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The number of mortgage deals available for those with a 10% deposit has increased by 25 during November and is now at its highest level since the 1 June 2020.
Today there are 81 mortgage deals available at a 90% loan-to-value (LTV) – a LTV that requires a 10% deposit to apply for and is usually aimed at first-time buyers. This is an increase of 25 deals since the 1 November 2020, when the number of 90% LTV deals stood at 56. As well as this, as the below table shows, since the 1 October 2020 the number of 90% LTV deals has steadily increased and now stands at its highest level since 1 June, when there were 183 deals available.
Number of 90% LTV deals available | |
Date | Product number |
1 March 2020 | 779 |
1 April 2020 | 326 |
1 May 2020 | 100 |
1 June 2020 | 183 |
1 July 2020 | 70 |
1 August 2020 | 68 |
1 September 2020 | 62 |
1 October 2020 | 51 |
1 November 2020 | 56 |
30 November 2020 | 81 |
While the number of 90% LTV deals available is rising, those looking to buy a property with a 10% deposit should still be aware that the market is still challenging and there are currently 698 fewer 90% LTV deals available in the market today than there were on the 1 March 2020. As such, first-time buyers looking to buy a property with a 10% deposit should consider speaking to a mortgage broker, who will be able to assess all the 90% LTV deals in the market to help decide the best deal for the borrower’s circumstances.
In addition to the number of 90% LTV products rising, November has seen average rates on two and five year fixed deals at a 90% LTV fall. On the 1 November 2020, the average 90% LTV on a two year fixed deal stood at 3.76%, which has since fallen by 0.08% during the month to stand at 3.68% today. Meanwhile, the average five year fixed rate on a 90% LTV deal was 3.98% on 1 November 2020, which has decreased by 0.16% to stand at 3.82% today.
Although buyers with a 10% deposit will have seen their choice of deals increase during November, those with a 5% deposit now have fewer deals to choose from. On the 1 November 2020, there were 12 deals available at 95% LTV, which requires a 5% deposit, this fell to just eight available on the 30 November 2020. In fact, the number of deals available at a 95% LTV have consistently fallen or remained the same month-on-month since 1 August 2020, which could signal that lenders are nervous that house prices will fall next year and are therefore reluctant to lend to those with a small deposit.
As first-time buyers looking to get onto the property ladder with a 5% deposit have so few deals to choose from, they may want to consider waiting to increase their savings so that they can offer a 10% deposit on a property. Alternatively, first-time buyers can consider using the Government’s help-to-buy equity loan scheme to boost their deposit.
To see what mortgage deals are currently available at a 90% and 95% LTV, take a look at our first-time buyer mortgage chart.
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. Links to third parties on this page are paid for by the third party. You can find out more about the individual products by visiting their site. Moneyfacts.co.uk will receive a small payment if you use their services after you click through to their site. All information is subject to change without notice. Please check all terms before making any decisions. This information is intended solely to provide guidance and is not financial advice. Moneyfacts will not be liable for any loss arising from your use or reliance on this information. If you are in any doubt, Moneyfacts recommends you obtain independent financial advice.
Each week the moneyfacts.co.uk content team round up the very best mortgage rates available in the UK. Compare and apply today.
Each week the moneyfacts.co.uk content team round up the very best mortgage rates available in the UK. Compare and apply today.
As the cost of living crisis continues to dominate headlines, data from the latest Moneyfacts UK Mortgage Trends Treasury Report shows that average mortgage rates continue to increase, with the average overall two-year fixed rate rising above 3% for the first time in over seven years.
Data from the latest Moneyfacts Mortgage Treasury Report shows that average mortgage rates continue to rise.
The Bank of England has today increased base rate by 0.25%, up from 0.75% to 1.00%. The decision to increase base rate will be disappointing news to consumers who are already facing a cost of living crisis, with further rises anticipated over the next 12 months. Borrowers sitting on a variable rate may want to lock into a competitive fixed rate mortgage deal to protect themselves from rising interest rates, perhaps sooner rather than later as fixed rates rise, with the average two-year fixed rate surpassing 3.00%.
The Bank of England has today increased base rate by 0.25%, up from 0.75% to 1.00%.
Each week the moneyfacts.co.uk content team round up the very best mortgage rates available in the UK. Compare and apply today.
Each week the moneyfacts.co.uk content team round up the very best mortgage rates available in the UK. Compare and apply today.
As the cost of living crisis continues to dominate headlines, data from the latest Moneyfacts UK Mortgage Trends Treasury Report shows that average mortgage rates continue to increase, with the average overall two-year fixed rate rising above 3% for the first time in over seven years.
Data from the latest Moneyfacts Mortgage Treasury Report shows that average mortgage rates continue to rise.
The Bank of England has today increased base rate by 0.25%, up from 0.75% to 1.00%. The decision to increase base rate will be disappointing news to consumers who are already facing a cost of living crisis, with further rises anticipated over the next 12 months. Borrowers sitting on a variable rate may want to lock into a competitive fixed rate mortgage deal to protect themselves from rising interest rates, perhaps sooner rather than later as fixed rates rise, with the average two-year fixed rate surpassing 3.00%.
The Bank of England has today increased base rate by 0.25%, up from 0.75% to 1.00%.
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