What are average mortgage rates for 90% LTV?
The best mortgage rates are in general reserved for equity or cash rich borrowers who are able to provide a large deposit for their loan.
However research from Moneyfacts.co.uk has revealed that average mortgage rates at lower deposit levels and in particular 90% LTV, have fallen in the past five years to 5.44%.
It has also been revealed that the number of 90% mortgage deals has increased by 223 in the past three years from only 76 on offer in May 2009 to 299 on offer today.
A spokesperson for Moneyfacts.co.uk commented on the figures saying that at the credit crisis peak most UK lenders withdrew their lower deposit mortgage deals. This product withdrawal left would-be home-owners with no hope of making a property purchase, as the remaining mortgage deals on offer required a deposit level which was just not achievable.
The cost of living has risen as has unemployment, which has further impacted prospective buyers ability to save for a deposit meaning fewer are now able to climb on the property ladder.
With lower deposit mortgage products remaining in high demand, banks and building societies are responding by slowly releasing more high LTV products. In order to get the property market moving more first time buyers need to be able to make a purchase and lenders are attempting to support this sector of the market.
Competitive mortgage rates at high LTV levels are available through Deal Direct.
Call one of our skilled brokers today for a mortgage market comparison.
