Low deposit best buy mortgages make a comeback.
Low deposit best buy mortgages are returning but they tend to be available for only 27 days before becoming fully subscribed which, is 3 days less than the historic average of 30 days. The choice of mortgages on offer has increased over the past 12 months from 2,527 to 3,180, with 90 per cent and 95 per cent loans making comebacks.
While low deposit best buy mortgages are making a strong resurgence, there are not enough of these deals to go around to satisfy home-buyer demand, according to financial data provider Moneyfacts. They advise that there are currently 49 mortgages available at 95 per cent LTV which is double the figure recorded in January 2011. There are also 280 deals on offer at 90 per cent LTV which is an increase from 199 in January last year.
"Best-buy" deals available at 95 per cent LTV include a 3 year fixed rate mortgage from Mansfield BS at 5.49 per cent, the product has a £999 arrangement fee and maximum loan value of £200,000 and Skipton BS have a 5 year fixed rate mortgage at 5.99 per cent which has a £195 application fee and maximum loan value of £300,000.
The low deposit best buy mortgages could offer signs of hope for first-time buyers, for whom the current stamp duty holiday ends in March. However, there are concerns that lenders will tighten their criteria this year meaning borrowers will face tougher challenges to meet mortgage conditions.
