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Shortage of high LTV mortgages post FLS

Shortage of high LTV mortgages post FLS

Category: Mortgages

Updated: 05/10/2012
First Published: 05/10/2012

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 It is now over 6 months old so the content may be out of date.

High loan-to-value (LTV) mortgages are still few and far between, more than two months after the Government's Funding for Lending Scheme (FLS) was launched.

According to research by, there are currently 69 mortgage deals with maximum LTVs of 95%; two months ago this figure was 62.

The number of deals at 90% has increased from 259 to 296 since the scheme began.

Sylvia Waycot, finance expert at Moneyfacts, believes that lenders need to expand their high LTV ranges to provide some encouragement to those attempting to venture onto the property ladder.

She said: "The FLS is about making lending more accessible, so you could be forgiven for thinking that one of the first areas to benefit would be the first-time buyer market which is well documented as a nightmarish struggle for those trying to get a step on the housing ladder.

"The sad truth is that there are only seven more 95% mortgages available than before the scheme started. Even if you were to add together the additional 95% and 90% mortgages that first-time buyers crave, they would still only amount to a paltry forty-four more choices.

"In contrast, those lucky enough to have a 20% deposit have an extra eighty-three mortgage choices, and it is a similar story for those with a 25% deposit who now have eighty-two more choices.

"So far, the evidence suggests more mortgages, but for the same people as previously catered for; those with high deposits who pose less risk, but frustratingly, not for the poor first-time buyer," she concluded.

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