95 per cent LTV deals more than double year-on-year
Both 90 and 95 per cent loan-to-value (LTV) mortgage products have seen significant growth over the last year, according to recent figures by financial information firm, Moneyfacts.
As of Tuesday 17th April, there are sixty-one 95 per cent LTV deals available on the market, up from 27 this time last year. 90 per cent LTV products have also increased with now 316 products now on offer compared to the 228 in April 2011, a 43 per cent increase.
|Date||95% LTV deals||90% LTV deals|
|16 April 2012||61||316|
However while product availability is stronger, tighter lending conditions means this news does not guarantee the resurrection of the first time buyer market.
Louise Holmes is a spokesperson for Moneyfacts:
“Over the past couple of years we have seen the high LTV mortgage market stage something of a comeback, mainly due to high demand from borrowers with limited deposits.
“The first time buyer market is often considered to be the life blood of the housing market and mortgage lenders recognise this. Risk is still a major factor, however, and the majority of mortgages with high LTVs require the financial backing from a third party, such as a guarantor, as well as strict credit checks and lending criteria.”¹
Nevertheless with things having been so bleak for so long, this news should be greeted with a degree of positivity as Holmes points out:
“These latest figures will be good news and a welcome relief to many borrowers who have struggled to find suitable mortgage deals within their financial capabilities.”¹
Content correct at time of publication