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60 per cent LTV deals are king

60 per cent LTV deals are king

Category: Mortgages

Updated: 06/05/2009
First Published: 06/05/2009

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.
In the land of the mortgage market, the 60 per cent loan-to-value (LTV) product is king, according to figures from Moneyfacts.co.uk

The number of new mortgage products requiring a minimum deposit of 40 per cent has increased by some 61 per cent in the past six months.

Conversely, the number of mortgages requiring a 10 per cent deposit has decreased by two thirds in the same period, despite numerous calls to encourage first time buyers – historically the lifeblood of the market – to secure their first properties.

Consumers able to take on a 60 per cent LTV product can expect to pay an average mortgage rate of 4.29 per cent, significantly down from 5.92 per cent six months ago.

The average rate on a 90 per cent LTV mortgage, of which only 71 are available compared to 297 60 per cent LTV products, is currently 5.98 per cent.

Darren Cook, analyst at Moneyfacts.co.uk, commented: "With the Bank of England base rate unlikely to fall below its current level and expectations are that we should see this rate unchanged for the remainder of 2009, we will only see better mortgage rates across the board if banks regain their appetite for responsible lending and healthy competition for new business returns to the market."

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