Mortgage boost for first time buyers - Mortgages - News - Moneyfacts


Mortgage boost for first time buyers

Mortgage boost for first time buyers

Category: Mortgages

Updated: 16/02/2011
First Published: 16/02/2011

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 It is now over 6 months old so the content may be out of date.

First time buyers have been given a welcome boost after research revealed the number of mortgages available to borrowers with smaller deposits has started to rise. has found that lenders have been gradually reintroducing higher loan-to-value (LTV) mortgages to the market in recent months.

The total number of mortgage deals available at 90% LTV, which require a 10% deposit, currently stands at 214, up from 144 in February last year.

Meanwhile, 560 deals are now available to those with at least a 15% deposit (85% LTV), compared with 310 a year ago.

At the same time, Moneyfacts says that the average cost of mortgage deals has been falling.

At present, the average rate on a two year fixed rate mortgage at 90% LTV stands at 6.09%, compared with 6.48% a year earlier.

For a similar deal at 75% LTV, the average rate has fallen to 4.03%, down from 4.27% in February 2010.

"Higher LTV mortgages are making a steady return to the mortgage market," said Louise Holmes, spokesperson for

"This will be welcome news to borrowers with small deposits, particularly first time buyers who have struggled to find products which meet their needs."

"Over recent months some lenders have increased their rates and expanded their number of higher LTV deals, suggesting that the market could be returning to a competitive, rather than risk-based state."

If you're searching for a mortgage, all the latest and greatest deals can be found in our mortgage best buy charts.

Find the best mortgage rate - Compare best selling mortgages

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 Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Remortgaging bounces back

Remortgaging has been enjoying a welcome boost in recent months, despite September’s slight dip, with many homeowners capitalising on record low mortgage rates to boost their finances.

Bank of Mum and Dad holds the (house) key

The Bank of Mum and Dad is an important source of finance for many young adults, and it seems that they still hold the key – in more ways than one.

Fee-free mortgages on the rise

Mortgage rates may be at record lows, but for some people, the extra costs associated can make switching deals a financial impossibility. It’ll come as welcome news, then, that the number of fee-free deals has more than doubled over the past year!