Boost in 90% mortgages as lenders return to the sector
More mortgages are becoming available to borrowers with a 10% deposit, as two major lenders increase their product scope to include those who require a 90% mortgage.
Yorkshire Building Society has launched a new range of mortgages for borrowers with a 10% deposit, available to first-time buyers and existing homeowners who want to move house or remortgage.
The mortgages are available up to 90% of the property’s value and include a two-year fixed rate at 3.69%, with a £995 product fee and a five-year fixed option at 3.79%. Both are available for home purchases and remortgages.
Ben Merritt, senior mortgage manager at Yorkshire Building Society, said: “We know it’s been a really tough few months for borrowers with smaller deposits but hope returning 90% LTV mortgages to our core range will provide a welcome boost to people wanting to get on to, or move up, the property ladder.
“We’ve consciously designed the new range to include something for homebuyers, movers and people remortgaging to make sure our options meet the varying needs of those borrowing more money against the value of their house.”
Nationwide boosts 90% range
Nationwide Building Society is also expanding access to 90% mortgage lending, by increasing availability of its 90% products to borrowers looking to buy their next home and existing mortgage members. The deals were previously only available to first-time buyers.
Borrowers will be able to take out a mortgage up to £500,000 over a maximum 25-year term, and rates include a two-year fixed rate at 3.49%, with a product fee of £999.
In addition, the lender will now allow fully gifted deposits at 90% LTV from the second week of December, moving back to its standard policy and expanding the level of support parents can provide to their family.
Henry Jordan, director of mortgages at Nationwide, said: “Given the uncertainty created by the pandemic, our re-entry into 90% LTV lending back in July was deliberately cautious and included enhanced criteria.
“Four months on, we are increasingly confident in our approach and so are delighted to be able to expand our support for the market to include home movers whilst removing some of the temporary criteria for first-time buyers, making it easier for parents to help them take their first step onto the housing ladder.”