Average 90% LTV rates fall
16th May 2012
The average rate of a 90 per cent loan-to-value (LTV) mortgage on a UK property has fallen steadily in recent years, according to the latest report.
Research by Moneyfacts shows that the rate now stands at just 5.44 per cent, while the number of 90 per cent deals increased during the same time period, totalling 299 today, after standing at just 76 in May 2009.
In May 2008, the average 90 per cent LTV rate was 6.61 per cent, the following year it stood at 6.09 per cent and in May 2010 it had risen to 6.38 per cent, before falling to 5.98 per cent in May 2011.
Louise Holmes, spokesperson for Moneyfacts.co.uk, noted that the majority of lenders withdrew their high LTV mortgage products at the height of the mortgage crisis, which left some prospective homeowners "high and dry", but the situation has clearly changed for the better.
"Demand for high LTV mortgages is, and always will, be high. Lenders have shown they recognise this by edging cautiously back into this area of the market with some competitive deals of late," she explained.
News of increased choice and lower rates in this sector of the mortgage market will be "music to the ears" of potential borrowers, the expert added.
Posted by Staff Writer: Robin Stenson
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