There will always be great demand for high loan-to-value (LTV) mortgages, it has been claimed.
Louise Holmes, spokeswoman for Moneyfacts.co.uk, noted lenders recognise this and are therefore cautiously returning to this section of the market with competitive deals in tow.
Ms Holmes was speaking in response to new figures from the website – which started life as a financial factsheet in 1988, consisting of six pages – that revealed the average rate of a 90 per cent LTV mortgage has steadily dipped over the last half-decade to stand at 5.44 per cent.
This has occurred over the same time period that has seen the number of 90 per cent deals jump from 76 in May 2009 to today’s sum of 299.
Ms Holmes stated: “News of increased choice and lower rates in this sector of the mortgage market will be music to the ears of potential borrowers, whose voices finally appear to have been heard.”
She added, however, that approvals remain at a premium as a result of strict underwriting and credit checks increasingly coming into play.
