Significant increase in higher LTVs
Commenting, he said: “Over the last month we have seen a continuation of the impact of a modest increase in competition from mortgage lenders and this has been particularly evident in the 2 year fixed rate market.
“However, what is more important for the health of the property market than modest reductions in rates available for borrowers only requiring a relatively low loan to value (LTV) is the fact that there has been a significant increase in the number of mortgages available up to 80%, 85% and even 90% LTV. Furthermore the additional competition in this sector of the market has pushed some rates and some arrangement fees lower.
“With lifetime trackers now available from Bank Rate + 2.08%, 2 year trackers from Bank Rate + 1.99% and a 5 year fix at 4.89%, all with lender arrangement fees of under £1,000 and the latter two deals available to 80% loan to value, borrowers now have access to the best rates for many months.”