According to Moneyfacts, in February 2011 there were 214 deals with a 90% LTV and 560 with a 85% LTV, out of 2811 products. This is in comparison with 185 deals with a 90% LTV and 454 deals with a 85% LTV, out of 2438 products, in August 2010. In February 2010 there were 1971 mortgages available, with 144 requiring a 10% deposit and 310 requiring a 15% deposit.
Louise Holmes, spokesperson for Moneyfacts.co.uk, commented: “Higher loan-to-value mortgages are making a steady return to the mortgage market. This will be welcome news to borrowers with small deposits, particularly first time buyers who have struggled to find products which meet their needs.
“Lenders became risk averse during the height of the credit crunch by withdrawing their higher loan-to-value mortgage products. Over recent months some lenders have increased their rates and expanded their number of higher loan-to-value deals, giving indications that the market could be returning to a competitive, rather than risk-based state.”
