"Two Swallows do not make a summer", said Louise Cuming, head of mortgages at moneysupermarket.com, "but it is very encouraging to see two lenders reducing the cost of borrowing and making those deals available at higher loan to values.
"There have been some great deals on mortgages around recently, but by and large the eligibility criteria have restricted them to people looking to borrow at low LTV which is of little help to many existing borrowers. It is great to see Woolwich and National Australia Bank (via its Clydesdale and Yorkshire Bank brands) making better deals available at higher LTVs.
"Barclays pledged to increase lending to homeowners by £5.5 billion and to deliver on this promise it is cutting the mortgage rates offered under its Woolwich brand. It is encouraging to see Woolwich have raised the loan to value (LTV) rate on their best deals, meaning that affordability will now have more reckoning on borrowers obtaining the mortgage they want. Whilst equity remains king elsewhere, it might be worth prospective borrowers waiting a short while to see if other lenders follow suit and offer their top deals at more attainable LTV rates.
"Clydesdale Bank and Yorkshire Bank are to be congratulated for making it easier for borrowers to access mortgage deals. These providers are the only national players currently offering mortgages up to 95%, and to then also waive arrangement fees across a range of products shows a real commitment to kick starting the mortgage market."
