FLS only boosting low LTVs

Sarah Davidson

October 5, 2012

Moneyfacts showed the number of 95% LTV deals in October was 69, up from just 62 in August when the Funding for Lending Scheme began.

Meanwhile there are now 857 products at 75% LTV up from 775 in August.

Sylvia Waycot of Moneyfacts.co.uk said: “The FLS is about making lending more accessible so you could be forgiven for thinking that one of the first areas to benefit would be the first-time buyer market which is well documented as a nightmarish struggle for those trying to get a step on the housing ladder.

“The sad truth is that there are only seven more 95% mortgages available than before the scheme started.

“Even if you were to add together the additional 95% and 90% mortgages that first-time buyers crave, they would still only amount to a paltry 44 more choices.

“In contrast, those lucky enough to have a 20% deposit have an extra 83 mortgage choices, and it is similar story for those with a 25% deposit that now have 82 more choices.

“So far, the evidence suggests more mortgages, but for the same people as previously catered for, those with high deposits who pose less risk, but frustratingly, not for the poor first-time buyer.”

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