Mortgage rates dive in long-term LTV market - Mortgages - News - Moneyfacts


Mortgage rates dive in long-term LTV market

Mortgage rates dive in long-term LTV market

Category: Mortgages

Updated: 06/10/2011
First Published: 06/10/2011

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 It is now over 6 months old so the content may be out of date.

The average rates applied to high loan-to-value (LTV) mortgages have continued to fall in recent months, figures from have revealed.

In fact, the average two year fixed rate on a 90% LTV mortgage is currently at its lowest point since January 2008 and has fallen markedly over the last 12 months.

One year ago, such a product would have carried an average rate of 5.97%, rising to 6.05% just six months ago.

A buyer taking a two year fixed rate at 90% today can expect a rate of 5.39%.

Louise Holmes, spokesperson for, said the availability of high LTV mortgages has increased in recent months, helping to bring down the average rate.

"Lenders have begun to launch more competitive products to borrowers who during the height of the credit crisis had pretty much given up on the prospect of owning their own property," she added.

Average rates have fallen even more significantly on longer term 90% mortgages.

One year ago, the average five year fixed rate mortgage was priced at 6.66%, rising to 6.87% just six months ago.

But as lenders have launched more products at this tier, the average rate has tumbled, falling by a full 1.00% in just six months to 5.87%.

Ms Holmes said that homeowners keen to take advantage of the low rates should act fast.

"Interest rates are predicted to stay at the historical low of 0.50% for the foreseeable future. Borrowers would be wise, however, to take advantage of low fixed mortgage rates while they can as lenders will increase product rates once interest rates begin to rise," she said.

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 Any products featured may be withdrawn by their provider or changed at any time.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

Does your mortgage lender owe you money?

Earlier this week, the financial watchdog revealed that hundreds of thousands of mortgage holders could have been overcharged by their lender. Are you one of the many who could be in line for a windfall?

Do you think your home will rise in value?

There’s been a lot of talk recently about the rate of house price growth slowing, but is it affecting your personal expectations? According to research, it could be, with fewer people now expecting the value of their property to increase.

Confidence among “second steppers” is on the rise

We all know how difficult it can be taking that first step on the ladder, but what about the second step? In many cases, getting onto the next rung can be just as challenging, but happily, confidence among this cohort appears to be on the rise.