Lenders increase mortgage rates for low deposit deals.
The news is lenders are starting to increase their mortgage rates for would-be property buyers with small deposits.
While there is currently increased availability of high loan to value deals, lenders have started to make their rates less appealing.
Home buyers are recommended to consider carefully the amount of deposit they make available when trying to secure a deal. The higher the deposit the more competitive the mortgage rates offered will be.
At the end of April The Woolwich announced that it was to limit its mortgage range for small deposits. Loans for 85pc LTV were withdrawn completely and would be buyers were advised to either take a 90pc LTV deal with a higher rate, or provide a larger deposit of 20pc or above.
Those would-be home-owners who are unable to find an extra 5pc for their deposit find themselves offered just one 90 per cent LTV from The Woolwich, which is a 4 year fixed rate at 6.19pc. Those who can find an extra 5pc will have access to the lender's 80pc LTV deal fixed for 5 years at 4.49pc or their 3 year fixed deal offered at 3.99pc.
When comparing rates it seems that all major banks with the exception of the Halifax, offer better fixed mortgage rates at 90pc LTV than those on offer from The Woolwich.
Deal Direct advise would-be home-owners to try to provide as large a deposit as possible when trying to source a deal.
We do however realise that not all borrowers are in this position, therefore we recommend that you contact us and we will source the most competitive deal available regardless of your deposit level.
