The number of mortgage products offering maximum loan to values of 95% has more than doubled over the past year from just 27 to 61 today, figures from Moneyfacts reveal.
Deals with a maximum LTV of 90% have also increased to 316 today compared to 228 this time last year, an increase of 43%.
Combined with an increase in product volumes, average rates for high LTV deals have reduced. Today the average 2-year fixed rate at 95% LTV is 5.52%, down from 6.49% from April 2011. The previous year there were no 2-year fixed deals at 95% LTV.
The average 2-year fixed rate at 90% LTV today is 5.45%, down from 6.05% in April 2011 and down from 6.48% in April 2010.
Louise Holmes, spokeswoman at Moneyfacts, said: “Over the past couple of years we have seen the high LTV mortgage market stage something of a comeback, mainly due to high demand from borrowers with limited deposits.
“The first-time buyer market is often considered to be the life-blood of the housing market and mortgage lenders recognise this. Risk is still a major factor however and the majority of mortgages with high LTVs require the financial backing from a third party such as a guarantor as well as strict credit checks and lending criteria.
“These latest figures will be good news and a welcome relief to many borrowers who have struggled to find suitable mortgage deals within their financial capabilities.”
David Sansome, Managing Director at Sansome & George said: “This is clearly good news for the property market although I strongly advise potential buyers to take professional advice as the detailed terms of mortgage schemes vary significantly.
Our mortgage advisers will be pleased to assist you in finding the most appropriate scheme for your circumstances.”
