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95pc LTV products double

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, figures from Moneyfacts reveal.



Yuan Phoon, 16 April, 2012

Deals with a maximum LTV of 90% have also increased to 316 today compared to 228 this time last year, an increase of 43%.

Combined with an increase in product volumes, average rates for high LTV deals have reduced.

Today the average 2-year fixed rate at 95% LTV is 5.52%, down from 6.49% from April 2011. The previous year there were no 2-year fixed deals at 95% LTV.

The average 2-year fixed rate at 90% LTV today is 5.45%, down from 6.05% in April 2011 and down from 6.48% in April 2010.

Louise Holmes, spokeswoman at Moneyfacts, said: "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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