High loan-to-value (LTV) mortgages for borrowers with smaller deposits are making a welcome return to the market offering more choice for first-time buyers in particular

New data out today has revealed the number of deals for people who need to borrow up to 90% of their property’s value have almost doubled since December.

Indeed, as the year ended there were 88 deals available to borrowers who had a 10% deposit but today that number stands at 160.

Just last week big lenders such as HSBC and Coventry Building Society announced they were reintroducing their 90% LTV deals which they had pulled from the market in mid-2020 when the impact of the pandemic began hitting the mortgage industry.

Indeed, Moneyfacts.co.uk, which compiled these latest figures, said this was the highest number of 90% deals recorded since June 2020.

It’s not just good news for those with small deposits – Moneyfacts also revealed higher levels of availability in general in the mortgage arena.

Eleanor Williams, finance expert at Moneyfacts, said: “Following the sharp drop off in availability in 2020, it is positive to see that we are beginning 2021 with the total number of mortgage deals rising for the third consecutive month.

“With 111 more deals on offer this month, at 2,893 this is the highest we have seen since April 2020, when the sector experienced mass product withdrawals as the impact of Coronavirus and subsequent base rate cuts began to be felt.”

She added: “This improvement in options for mortgage borrowers has occurred at a time when high levels of borrower demand have been fuelled by those hoping to benefit from the stamp duty holiday and by those who re-evaluated what they want from a home and were part of the unleashed demand that arose after the first lockdown in 2020.

“As we navigate our way through another period of restrictions, this time the property market is expected to remain open for business.

“However, with timescales for processing mortgages potentially subject to delays, and with the average shelf life for mortgages remaining at just 28 days, it has possibly never been more vital to call upon the knowledge and help of a qualified adviser to progress any applications and explore what may be the best option for their circumstances.”

 

Article sourced from What Mortgage website in an article on 11^th January 2021. Original full article can be viewed by clicking link below

 

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