UK 95% LTV Mortgage Availability Doubles in a year
Housing-Market / UK Housing Apr 16, 2012 - 08:56 AM GMTBy: MoneyFacts
The number of mortgage products offering maximum loan-to-values of 95% has more than doubled over the past year, from just 27 to 61 today.
Deals with a maximum LTV of 90% have also increased to 316 today compared to 228 this time last year, an increase of 43%.
Date |
Deals with 95% LTV |
Deals with 90% LTV |
Today |
61 |
316 |
April 2011 |
27 |
228 |
April 2010 |
13 |
140 |
Source: Moneyfacts.co.uk 16.4.12 |
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Combined with an increase in product volumes, average rates for high LTV deals have reduced.
Date |
Average 2 year fixed 95% LTV rate |
Average 2 year fixed 90% LTV rate |
Today |
5.52% |
5.45% |
April 2011 |
6.49% |
6.05% |
April 2010 |
No 2 year fixed deals at 95% LTV |
6.48% |
Source: Moneyfacts.co.uk 16.4.12 |
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Louise Holmes, spokesperson at Moneyfacts.co.uk commented: “Over the past couple of years we have seen the high LTV mortgage market stage something of a comeback, mainly due to high demand from borrowers with limited deposits.
“The first-time buyer market is often considered to be the life-blood of the housing market and mortgage lenders recognise this. Risk is still a major factor, however, and the majority of mortgages with high LTVs require the financial backing from a third party, such as a guarantor, as well as strict credit checks and lending criteria.
“These latest figures will be good news and a welcome relief to many borrowers who have struggled to find suitable mortgage deals within their financial capabilities.”
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