Article about high LTV deals gives the wrong impression
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I was interested to read on Mortgage Strategy Online on January 26 an article stating that the number of 85% LTV deals is on the increase.
I have been studying mortgage products for a while and when I started looking last August I was able to get a five-year fixed deal at 5.99% with a 10% deposit.
Now the best I can find is a five-year fixed deal at 6.39% - hardly a fantastic improvement.
In my opinion, publishing stories that quote figures like this contributes to distorting the truth of what is happening in the market and could give consumers misplaced optimism.
There may be more deals and they may even be at a slightly lower rate but when you see some lenders charging more than 7% when the base rate is so low it’s clear that this is not a competitive market.
The banks should stop bleeding buyers dry to make up for their incompetence that led to the near-collapse of the financial system.
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