Number of 95% LTV products at post-crisis high

Ryan Bembridge

March 12, 2018

There are now over 300 products at 95% loan-to-value on the market – the highest number since April 2008, Moneyfacts data shows.

The number of high LTV products available has swelled to 307 in March 2018 from 253 in March 2017 and 270 in September 2017.

This year has seen a number of lenders clamour for first-time buyer business after the government cut stamp duty for first-time buyers on property purchases up to £300,000 in last year’s Autumn Statement.

Charlotte Nelson, finance expert at Moneyfacts, said: “The 95% loan-to-value (LTV) market has seen a significant boost to product numbers this month, seeing the number of deals pass the 300 mark to reach a post-crisis high. This increase bucks the trend for the rest of the market, with all the lower LTVs (except 90 & 75% LTV) experiencing a drop in numbers this month.

“The numbers for this month were improved by eight lenders re-entering the market. Providers know that many borrowers on their mortgage books, who are coming to the end of their mortgage, may want to take advantage of the low rates on offer elsewhere. So, the introduction of new deals at 95% will give the providers’ mortgage book a new zest for life.

“Alongside the expansion of 95% LTV deals, The Moneyfacts UK Mortgage Trends Treasury Report shows that the average two-year fixed rate for a 95% LTV has fallen for five consecutive months, reaching 4.02%. Despite this, they have yet to recover back to the all-time low seen in January 2017.”

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