More 90-95% LTVC Mortgages to be Found in Jan… | The Mortgage Broker

The Moneyfacts website reported this week that there has been a “strong resurgence” in low-deposit mortgages, with the number of such deals increasing from 2,527 to 3,180. Research published by the site found that there has even been a rise in the number of 90 per cent and 95 per cent loan-to-value (LTV) mortgages, especially among residential mortgage deals, although demand is still outstripping supply. For evidence of this, Moneyfacts noted that in previous years notably before the 2007-8 credit crunch such offers tended to be available for around 30 days before they were oversubscribed, whereas nowadays they are only around for an average of 27 days. Researchers found 49 current mortgage deals with 95 per cent LTV, which is more than twice as many as the 24 which were available in January last year and far more than the lonely three which could be found in April 2009. When it came to 90 per cent LTV mortgages, there were 280 available this month, which is significantly more than the 199 on offer in January 2011 and the 72 available in April 2009. Although this increase is good news for first-time mortgage applicants, who will be anxiously awaiting the end of the stamp duty holiday in the spring, some analysts fear that lenders may take the opportunity to raise their criteria for borrowers due to the ongoing economic uncertainty in the UK, meaning that some applicants will not be able to take advantage of the increased number of deals. Currently, the largest range of mortgages on the market are in the 60 per cent LTV bracket, with Moneyfacts researchers finding 393 deals available in January this year, compared to 271 12 months ago and 280 in April 2009.