What are the factors that allow for higher ratios on loans over 90% LTV?

Higher loan-to-value (LTV) ratios above 90% are often accepted by lenders when certain factors indicate a lower risk profile or a strong capacity for the borrower to manage the loan.

Having a substantial net worth reassures lenders that the borrower has additional financial resources and stability, which can mitigate the risk associated with high LTV loans. This net worth can act as a cushion in case of financial hardships, thereby increasing lender confidence.

The potential for increased earnings is another crucial factor. If a borrower has the prospect of higher income or salary growth, it suggests an ability to manage larger monthly payments, making them a less risky candidate for loans that exceed the standard LTV thresholds.

Additionally, owning an energy-efficient home can contribute to financial stability. Such homes often have lower utility costs, which can enhance disposable income and reduce overall living expenses. This efficiency can support a borrower’s capacity to make mortgage payments, which is an appealing factor for lenders.

All these factors combined provide a more comprehensive picture of the borrower's financial situation and their ability to sustain a loan. Hence, they justify allowing higher ratios on loans that exceed 90% LTV, as they lower risk for the lender.