HIGHER LTV MORTGAGE DEALS MAKING A COME-BACK

Higher loan-to-value mortgages are making a steady return to the mortgage market.

Adam Offer, managing director of Besley Hill, Bristol and Gloucestershire’s biggest independent estate agents, says 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.

But 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.

Adam cites figures from Moneyfacts.co.uk showing that there are almost 50% more 90% LTV mortgage deals available today, compared to one year ago.

There were only 144 90% LTV deals in February 2010, and 185 last August, compared with 214 today, whilst there has also been an increase in the availability of 85% LTV deals, with 560 deals on the market today, compared to 310 in February 2010.