In July 2012, prior to the FLS launch, there were 389 mortgages at 60% LTV to choose from and 263 at 90% LTV.
Moneyfacts confirmed today there are 498 mortgages at 60% LTV, an increase of 109, while the 90% LTV bracket has only increased by 21.
Sylvia Waycot, finance expert at Moneyfacts, said: “Before we all stick the bunting out FLS isn’t panning out quite the way you might expect. For instance the first-time buyer market has not benefited from any dramatic change of fortune.”
Waycot added: “It may well be time that the government re-evaluated FLS and rather than give a wide remit of making mortgages more accessible it should narrow it down to offering more mortgages in the higher LTV areas rather than the already well-serviced, less risky 60% LTV market.
“A first-time buyer with a deposit and a secure job is not a high risk it is just someone trying to get a foot onto the housing ladder.”
