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First-time Buyers

FLS has brought just 21 extra 90% LTV mortgages

Your Mortgage
Written By:
Your Mortgage
Posted:
Updated:
29/11/2012

Since the Funding for Lending Scheme launched on 1 August, the funding appears to have gone to the lower end of the LTV curve, with just 21 more loans above 90% LTV.

To date, 30 lenders have signed up to the FLS to take advantage of the government’s offer of £80bn of subsidised funding to stimulate SME and credit lending.

Sylvia Waycot, finance expert at Moneyfacts, said it isn’t time to hang the bunting out just yet.

“The first-time buyer market has not benefited from any dramatic change of fortune. In July 2012, prior to the FLS launch, there were 389 mortgages at 60% loan-to-value (LTV) to choose from and 263 at 90% LTV. Today there are 498 mortgages at 60% LTV, an increase of 109, whereas there has been an increase of just 21 in the 90% LTV bracket.”

The 90% LTV rate has fallen by just 0.22% since August, whereas the 60% LTV has fallen by 0.52%.

Waycott said the government needs to target its funding to ensure the cheaper rates are also shared out to higher LTV loans.

“A first-time buyer with a deposit and a secure job is not a high risk; it is just someone trying to get a foot onto the housing ladder,” she said.


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