Equity Release

95% mortgage availability boosted, with new deals launched

Christina Hoghton
Written By:
Christina Hoghton

Metro Bank cuts high LTV rates, while Vernon BS launches 95 per cent fee-free mortgage

Metro Bank has reduced the rates for its 90 and 95 per cent loan to value (LTV) products and increased the maximum loan size on its 95 per cent LTV range.

The bank has reduced the rates on all of its 90 and 95 per cent LTV fixed rate residential mortgages by 0.2 per cent, with the cuts also applying to its professional range.

On the 90 per cent LTV side, its two-year fixed product has a rate of 2.99 per cent, its three year-fixed rate will be 3.09 per cent and its five-year fixed rate will be 3.19 per cent.

Its professional five-year fixed rate at 90 per cent LTV will fall from 3.54 per cent to 3.34 per cent.

Its two-year fixed rate at 95 per cent LTV has decreased to 3.49 per cent, whilst its three-year fixed will stand at 3.59 per cent. The lender’s five-year fixed at 95 per cent LTV will be 3.69 per cent.

The maximum loan size for its 95 per cent LTV products has increased from £570,000 to £675,000, in line with its 90 per cent LTV range.

Metro Bank’s director of mortgage distribution Charles Morley said: “We’re pleased to further enhance our higher LTV mortgages with these significant rate reductions. Alongside increasing maximum loan sizes, it demonstrates our strong commitment to a wide range of borrowers as we build on our plans to become the UK’s premier specialist lender.”

Vernon Building Society offers fee-free deal

Vernon Building Society has made its five-year fixed rate up to 95 per cent loan to value product available via brokers and directly from the lender in order to meet increased demand for high LTV loans from first-time buyers.

The product, which is the building society’s only 95 per cent LTV product, has a rate of 3.49 per cent.

It is eligible for purchase only and is available on loans between £95,000 and £300,000 across England and Wales, excluding London and the South East.

Early repayment charges apply for the first five years of the mortgage.

Vernon’s head of mortgage and savings distribution, Brendan Crowshaw, said: “We’re currently seeing strong demand for high LTV loans from first-time buyers and this low-rate mortgage comes with no arrangement fee to help minimise the buyer’s upfront costs.

“Plus, our common-sense approach to underwriting means we’ll consider every client’s circumstances on an individual basis.”

Lenders have been bringing back 95 per cent LTV mortgages in recent months, after they were withdrawn during the pandemic. They have also been pruning higher LTV rates to make them more attractive to borrowers with a lower deposit.