95% LTV borrowers paying £300 more than 75% LTV

Homeowners with a 5% deposit pay an average of £762 in monthly repayments, £294 more than the £468 paid by those with a 75% LTV mortgage.

95% LTV borrowers paying £300 more than 75% LTV

Borrowers at 95% loan-to-value are paying nearly £300 more per month than 75% LTV, AmTrust’s Moneyfacts LTV Tracker has revealed.

Homeowners with a 5% deposit pay an average of £762 in monthly repayments, £294 more than the £468 paid by those with a 75% LTV mortgage.

The gap between a 5% and 25% deposit has widened from 2.03% in January 2016 to 2.24% – and this is expected to widen further now the Help to Buy mortgage guarantee scheme has expired.

Simon Crone, commercial director at AmTrust International, mortgage and special risks, said: “Despite the availability of high LTV loans among many lenders now, and a number of former HTB2 scheme lenders recently announcing a continued commitment to providing 5% deposit loans, the real proof of the pudding will be in lender activity.

“It’s our hope that lenders are not just paying lip service to high LTV lending, opting instead to focus their efforts on borrowers with large deposits.

“It’s our hope that lenders are not just paying lip service to high LTV lending, opting instead to focus their efforts on borrowers with large deposits.

“It would be a huge shame if the positive steps taken by the industry and government to improve lending to first-time buyers, after the calamitous collapse of high LTV lending in the wake of the financial crisis, was undone over the months ahead."