More lenders to offer 95% LTV in 2016

Ryan Bembridge

December 10, 2015

New lenders will enter the 95% loan-to-value market in 2016, Accord’s national intermediary sales manager David Robinson has foretold.

He reckoned the UK mortgage market is set for steady growth next year after recording a successful 2015.

Robinson said: “There are clear indications that the UK mortgage market will continue to grow steadily; demand is still high and property prices are buoyant, which means competition will remain fierce amongst lenders.

“We expect some lenders will re-enter the 95% loan-to-value market, and challenger banks will develop their mortgage offerings. If the market continues as we expect it to, this will be a very favorable climate for borrowers, as we would expect lenders to continue to provide competitive deals.

“The whole sector will be affected by a rise in the Bank of England base rate, which is likely at some point next year although we anticipate that the increase will be slow and steady.”

David Hollingworth, associate director of communications at London & Country Mortgages, said: “The market is extremely competitive which should be good news for intermediaries and their customers. With lenders fighting for business the rates on offer should continue to offer outstanding value. Consumer understanding of the benefits of advice in finding the right lender and deal for their individual circumstances should again see brokers play a key role in mortgage distribution.

“There will be a sharp focus on the Buy to Let market in the early months to monitor the impact of the Stamp Duty Land Tax changes coming down the line in April. Will an early rush be followed by an easing back in interest from landlords?”

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