High Loan To Value Mortgages News High LTV Mortgage Competition Improving 18470491
High LTV mortgage competition improving
24 February 2010 / by Rachael Stiles
The number of high loan to value fixed rate mortgages available, of 90 per cent LTV or above, has nearly doubled in the last 12 months.
Market analysis from MoneyExpert.com suggests that high value lending is returning to the mortgage market, with 147 fixed rate mortgages on the market at 90 per cent LTV with a fixed rate, compared to 78 products on the market this time last year.
The wider fixed rate mortgage market has expanded considerably, the figures show, with an estimated 46 per cent more products available now compared to last February, but a wider availability of higher LTV mortgages has taken longer to return to the market.
The wider availability of higher LTV deals is reflected in the higher average LTV that borrowers are taking out, rising from 75.7 per cent to 76.8 per cent.
Meanwhile, the tracker mortgage market is still not as favourable for those borrowers with small deposits. While the number of variable rate products available has tripled in the last 12 months, those offering 90 per cent LTV or higher has risen only marginally from 43 to 51.
Nonetheless, the increase in fixed rate deals offering higher loan to values is promising for first time buyers trying to enter the market, MoneyExpert believes, and some lenders have even reintroduced the 100 per cent mortgage, though these are currently only available to remortgage customers.
Pierre Williams, head of research at MoneyExpert.com, said: “For those looking to borrow a sizeable percentage of the value of their home this is clearly good news. Lenders have been risk averse in the past year and have shied away from high LTVs. Measured optimism over the housing market, though, seems to be encouraging higher value lending.
“It’ll be interesting to see how other providers react in the coming months. We’re some way off the flurry of 100% deals of previous years and that is a good thing to some extent but it seems that door is opening up.”
© Fair Investment Company Ltd