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Published: 14/02/2017

The Help to Buy mortgage guarantee scheme may have come to an end, but that hasn't dampened activity among first-time buyers. Instead, demand seems to be escalating, with figures from Yorkshire Building Society revealing a definite spike for high loan-to-value (LTV) mortgages in January, as increasing numbers sought to get on the housing ladder.

The mutual saw demand for 95% LTV mortgages rise by a whopping 91% year-on-year in January, suggesting that more were able to pull together a 5% deposit to take that first step. This follows increased demand across 2016 as a whole, with the mutual increasing its 95% LTV lending by more than 50% compared with 2015, so there's no sign of the market losing its momentum.

"More and more first-time buyers are trying to get their first step on to the property ladder so the demand for 95% LTV mortgages shows no sign of slowing down," commented Charles Mungroo at Yorkshire Building Society. "It's positive to see that borrowers realise there are still options available across the market to those with smaller deposits, despite the disappearance of the Help to Buy mortgage guarantee scheme."

The figures follow our own research which revealed that the high-LTV market hasn't disappeared as a result of the withdrawal of Government support – indeed, the number of 95% LTV mortgages available has risen by 38 on a monthly basis to stand at 248, as providers re-launched their 95% LTV deals as standard rather than Help to Buy offerings.

This shows that, not only is demand for first-time buyer mortgages growing, but providers are willing to accommodate, so if you're thinking of taking the plunge, now's a great time to go for it! This is particularly the case now that mortgage rates are showing signs of edging up – if you want to take that first step while keeping your repayments to the absolute minimum, check out the top first-time buyer mortgages and get ready to realise your dreams.


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