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18 Oct 2019

Go Direct Personal Finance News  2009

Return of the high LTV Mortgages

There has been an increase in activity from lenders launching mortgage deals at higher loan-to-values (LTVs), providing some much-needed relief for first-time buyers (FTBs) searching for competitive rates for smaller deposits.

There were 36 new mortgage deals in the 85% LTV tiers and above in August 2012, a complete reversal from the drop of 26 products the previous month.

In a breakdown of individual tiers, there were 16 more products in the 85% LTV tier (11 fixed and five variable), 15 in the 90% LTV tier (nine fixed and six variable) and five in the 95% LTV tier, all of which were fixed rate products.

This suggests that lenders are relaxing their attitudes to higher risk lending, perhaps in reaction to the Government’s recently-launched Funding for Lending scheme, which aims to make £80 billion of cheap funding available to banks and building societies on condition that they lend more to small businesses and consumers in the hope that this will kick-start the economy.

However, it appears that building societies are leading the way at offering products targeted at those with smaller deposits, with 10 of the 15 providers which launched 90% plus LTV products being building societies.

Sylvia Waycot, finance expert at Moneyfacts.co.uk, comments:

“Attaining a deposit becomes more realistic if LTVs are raised and so after years of frustration potential FTBs must be doing jigs of joy in the street.

“Increasing LTVs will create a knock-on effect in the whole housing market. Not only will it aid the stagnation of the FTB market, but also the second movers market because they need FTBs to sell to. House buying as we all know is a chain and every link is essential; strengthen one link and the whole chain benefits.”

New High  LTV Mortgage Deals

 

 

 

 

Mortgage Provider

Mortgage Interest Rate

Max LTV

Fee

First Trust Bank (NI)

3.99% Fixed to 31/01/2016

90%

£450,

Hanley Economic BS

4.29% Fixed to 30/11/2014

90%

£900,

Shepshed BS

4.49% discounted for 3 years

90%

£999,

Bath BS

4.89% discounted for 3 years

90%

0.50%

HSBC

4.89% Fixed to 31/12/2014

90%

None

HSBC

4.89% Fixed to 31/12/2015

90%

£599,

HSBC

4.89% Fixed to 31/12/2015

90%

None

HSBC

4.89% Fixed to 31/12/2017

90%

None

HSBC

4.89% Fixed to 31/12/2019

90%

None

Tipton & Coseley BS

4.94% discounted to 31.10.14

90%

0.40%

Furness BS

4.99% discounted for 3 years

90%

£199

Bath BS

4.99% Fixed for 3 years

90%

0.50%

Newcastle BS

5.19% Fixed to 31/10/2014

90%

None

Bath BS

5.29% Fixed for 3 years

95%

0.50%

Coventry BS

5.39% Fixed to 30/09/2017

90%

£499,

Melton Mowbray BS

5.49% Fixed to 31/10/2015

95%

£998,

Clydesdale Bank

5.69% Fixed to 30/11/2015

90%

£999,

Newcastle BS

5.69% Fixed to 31/10/2017

90%

£690,

NatWest Mortgage Services

5.95% Fixed to 31/10/2014

90%

£995,

Royal Bank of Scotland

5.95% Fixed to 31/10/2014

90%

£995,

Shepshed BS

5.99% Fixed for 5 years

95%

£999,

Newcastle BS

5.99% Fixed to 31/10/2017

95%

£690,

Saffron BS

6.49% Fixed to 29/02/2016

95%

£195,

Source Moneyfacts

 

 

Moneyfacts Group
Moneyfacts is the UK’s leading independent provider of personal financial information and our data is used and trusted throughout the financial industry.

 

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