Boost in low deposit mortgages
The number of 95% and 90% LTV mortgages have seen a significant boost in the last few months, according to data from Moneyfacts.
The financial information provider noted that the number of mortgages available to those with a 5% deposit increased from 238 in August to 250 in November.
Mortgages for those who can muster 10% upfront grew from 560 to 594 over the same time period.
Charlotte Nelson, finance expert at Moneyfacts, said: “Shortly after the EU referendum, the number of higher loan-to-value mortgages fell slightly, as providers quickly reassessed the risks of lending to borrowers with a smaller deposit and others worried that this was the start of a restriction of deals for first-time buyers.
“However, this month the number of products at 90% loan-to-value has increased to the highest point since April 2008, when the number of deals stood at 708. The number of products at 95% LTV also saw a boost, reaching an eight-month high.
“The Bank of England is keen to ensure that providers keep to business as usual, and after the initial shock to markets following the vote on 23 June it appears that the higher loan-to-value market is doing even better than usual. This shows how quickly institutions can now react and adapt to changes in the market.
“This is mainly due to the amount of competition there is in the market. Providers are now finding that the traditional ‘less risky’ areas of 60% LTV are being swamped with deals and they need to diversify into new sectors to attract borrowers.”