Number of 90pc LTV products at 312

Robyn Hall

July 19, 2011

The last time there was over 300 products available was in November 2008, when Bank of England base rate was at 4.5% and the impact of the credit crunch began to have a major impact on mortgage lending.

As well as an increase in the number of mortgage products available, the average rate on 90% LTV products has also begun to fall. The average rate on fixed rate mortgages has dropped 0.53% in the past year to 5.87% and has dropped 0.17% since last month. However tracker mortgages at 90% LTV are more expensive than this time last year, the average rate is now 5.5%, a drop of 0.22% since June.

Clare Francis, mortgage spokeswoman at moneysupermarket.com, said: “There is a severe shortage of first-time buyers at the moment and one of the reasons for this is down to the fact that it’s been so difficult to get a mortgage unless you’ve had a deposit of 25 per cent or more. It’s therefore encouraging to see an increase in the number of 90% and 95% mortgages available.

“That said, we are still a long way off the number of products that were available pre-credit crunch and those with smaller deposits are still having to pay a higher rate of interest than those who are able to put down 25% or 30%. It’s good to see things are moving in the right direction though as this should make it slightly easier for people to take that first step onto the property ladder.”

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