Average 90% LTV rates take a tumble - Mortgages - News - Moneyfacts

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Average 90% LTV rates take a tumble

Average 90% LTV rates take a tumble

Category: Mortgages

Updated: 16/05/2012
First Published: 16/05/2012

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.


Average rates of 90% loan-to-value (LTV) mortgages have fallen steadily in the last five years, research from Moneyfacts.co.uk has found.



Currently, the average 90% LTV mortgage is priced at 5.44%, a significant fall from 5.98% at the same point last year.



In May 2010, the average rate of a mortgage requiring a 10% deposit was 6.38%.



At the peak of the mortgage crisis, the majority of lenders withdrew their high LTV mortgage products, leaving prospective homeowners with little hope of affording the large deposits required.



At its worst point in May 2009, there were just 76 mortgages available at 90% LTV.



However, that rose to 238 in May 2011, and currently stands at 299.



It is likely that the number will continue to rise as lenders launch new products for the NewBuy initiative.



"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," said Louise Holmes, spokesperson for Moneyfacts.co.uk.



"However, strict underwriting and credit checks mean that approvals are at a premium.



"News of increased choice and lower rates in this sector of the mortgage market will be music to the ears of potential borrowers, whose voices finally appear to have been heard."

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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