High LTVs 7 X More Mortgage Defaults
Published / Last Updated on 06/02/2013
High LTV’s 7 X More Mortgage Defaults.
Research from leading credit rating agency, Moody’s has suggested that people with high loan to value mortgages are more likely to default on their mortgage than those with more equity.
Their research suggests those with 80% or more loan to values are 7 times more likely default.
Our view
The math makes basic common sense on the grounds of probability.
It is of course more likely that those with lower deposits for property purchase are possibly starting out in life and therefore have a higher percentage of their household income exposed to mortgage repayments.
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