Yorkshire BS Launches First-Time Buyer Mortgage | moneyfacts.co.uk

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Derin Clark

Derin Clark

Online Reporter
Published: 25/06/2020

Today, Yorkshire Building Society has launched a 90% loan-to-value (LTV) mortgage deal that is specifically aimed at first-time buyers.

Yorkshire Building Society has launched three deals, all at a 90% LTV. Two of the deals are for borrowing of up to £500,000 from a minimum loan of £50,000, one of which has a rate of 2.99% fixed until 31 August 2025, charges £495 and comes with the incentive of free valuation. The second offers a rate of 3.09% fixed until 31 August 2025 and while it does not charge any product fees, it also does not offer any incentives. The third deal is for borrowing of over £500,000 and has a rate of 3.14% fixed until 31 August 2025, charges £495 in product fees and offers a free valuation. All these deals revert to 4.49% after the fixed rate period comes to an end.

In addition to Yorkshire Building Society launching first-time buyer 90% LTV deals, tomorrow Platform is expected to return to the 90% LTV market. Platform will launch a five year fixed deal at a rate of 3.29%, which will charge £1,499 in product fees. The provider will also launch a five year fixed deal at a rate of 3.49% that does not charge any product fees. Both these deals are available to any borrower looking for a mortgage at 90% LTV.

Currently, HSBC offers the most attractive deals in the 90% LTV market with rates at about 0.5% lower than the next most competitive lender, Ipswich Building Society. Saying this, getting a HSBC mortgage at a 90% LTV is difficult at the moment as they are only allowing a set number of applications per day. Borrowers have faced weeks of lenders withdrawing their high LTV deals from the market, with Nationwide pulling its entire 90% and 95% range last week and a number of providers withdrawing high LTV products including Virgin Money and Accord Mortgages the week before. As such, borrowers looking for a high LTV deal will struggle and should consider using a mortgage broker to increase their chances of being successful in securing the best high LTV rate possible.

Commenting on lenders entering the high LTV market again, Eleanor Williams, finance expert at Moneyfacts.co.uk, said: “First-time buyers are a vital part of keeping the mortgage market moving, and so it comes as great news that lenders are again starting to relaunch products in the higher LTV tiers.

“Concern has been raised about the possibility of house price falls and consequential potential negative equity situations, making lenders understandably more cautious about lending in these higher-risk circumstances.

“Lenders have also found though that they have been overwhelmed by the level of demand for these brackets of products, resulting in some needing to withdraw deals only recently relaunched in order to manage their workload. Consumer demand is clearly evident, and the re-introduction of more deals for those with a 10% deposit, or even less, by more lenders would hopefully provide prospective purchasers with the choice they need to move forwards with buying a home.”


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