November’s base rate rise has been passed onto 75% loan-to-value mortgage rates with an average increase of nearly 0.25%, AmTrust data has found.
Rates at 95% LTV have remained largely unchanged; however AmTrust described the product choice as ‘patchy’, with there being fluctuations in the number available depending on the loan required and price of the property.
Despite the rate of mortgages narrowing between different LTVs those with 5% deposits are still paying two thirds more than those with a 25% deposit.
Pad Bamford, business development director at AmTrust Mortgage & Credit, said: “Rates for higher LTV mortgages actually dropped with lenders seemingly choosing not to inflict any rate rise on 95% LTV borrowers, while those seeking 75% LTV loans did see a rise in pricing somewhat akin to the 25 basis points increase in BBR.
“In terms of product choice, those seeking 75% LTV mortgages can still choose from in most cases, hundreds of loans, while those at the higher LTV level remain stuck with a much poorer and increasingly patchy choice.
“It means that the mortgages first-timers are most likely to need – high LTV ones – are still nowhere near the level we would hope to see.”
Typical deposits currently stand at nearly £8,191 at 95% LTV and £40,953 to 75% LTV, putting the difference between them at £32,762.
The rate of an average 75% LTV mortgage was 1.62% in Q4 2017, up from 1.42% in Q3.
At 95% LTV it fell to 3.96%, down from 4.02% in Q3.