Getting on the property ladder can be a real challenge for people. We understand this and the specific difficulties that can be faced. That’s why we take our first time mortgages work very seriously – because we want to help people achieve their goals!
If you have been looking to secure a property of your own, then one of the biggest requirements is having a suitably sized deposit to put down on your dream home.
The size of your deposit needs to align with the value of the home your looking to buy. But the ease with which you can pin down the type of mortgage you want will be decided by a selection of factors – one of which is the LTV ratio of the mortgages available to you.
In a flurry of recent activity within the mortgage market, more and more of these favourable offerings have been made available. Many 90% LTV mortgage offerings have emerged, making it easier for potential buyers to secure their ideal mortgage and ultimately their perfect home.
What is a 90% LTV mortgage?
We’ve touched on this before, but as a quick reminder: LTV stands for Loan To Value in the mortgage world. So a 90% LTV mortgage sees the loan the mortgage provider offers covering 90% of your new home’s overall cost, meaning your deposit only has to cover 10%.
A first time buyer for example who is looking to purchase a home for £150,000 and secures a 90% LTV mortgage only needs to stump up a £15,000 deposit. The higher the LTV percentage, the lower the deposit amount.
This kind of ratio is advantageous for many buyers, as saving such sums as are required for a house purchase deposit isn’t easy.
What’s hit the market?
There’s been a flurry – a furore even – of 90% LTV mortgage-related activity in the market of late, with numerous lenders getting involved.
The number of 90% LTV mortgages available on the UK market in the last month rose from 72 to 160. This has seen the number of 90% LTV mortgages reach its highest point since June last year.
Additionally, the general availability of mortgage deals has risen across the board and has done so for the third month on the bounce according to the figures released by MoneyFacts.
Which lenders are contributing to the trend?
Since the start of 2021, lenders including HSBC, Coventry Building Society and Leeds Building Society have all pushed 90% LTV mortgages back into the market.
It really is a case of the more the merrier if you are eyeing up a 90% LTV mortgage this year. The more lenders you can choose from, the higher the chances of securing that ideal mortgage for your requirements.
The combination of the stamp duty holiday and high availability of 90% LTV mortgages could give the mortgage industry a real jolt in the arm in the early part of 2021.
If this is achieved, hopefully it will stand the industry in good stead for the rest of the year.
