The average rate of a 90% loan-to-value mortgage has fallen steadily over the
past five years to just 5.44% according to Moneyfacts.co.uk. The number of 90% deals has, in turn, increased from just 76 in May 2009 to 299 today.
Louise Holmes, spokesperson for Moneyfacts.co.uk, commented:
At the peak of the mortgage crisis, the majority of lenders withdrew their high LTV mortgage products, leaving prospective homeowners high and dry with no hope of affording the large deposits required.
The rising cost of living and unemployment has also had a massive impact on prospective buyers ability to save for their first home. Demand for high LTV mortgages is, and always will, be high. Lenders have shown they recognise this by edging cautiously back into this area of the market with some competitive deals of late. However, strict underwriting
and credit checks mean that approvals are at a premium.
News of increased choice and lower rates in this sector of the mortgage market will be
music to the ears of potential borrowers, whose voices finally appear to have