Cheaper 85% LTV deals make a comeback

2 December 2009 | By Natalie Holt

First-time buyers accounted for 14% of Mortgageforce’s transactions in November, compared to an average of 10%.

Out of these first-time buyers, over half of them borrowed at 85% LTV.

Katie Tucker, technical manager at Mortgageforce, says: “85% deals bounced back in November.  

“Without these deals, half of the first-time buyers we helped would have been facing the high monthly payments of the sparse 90% LTV deals, or simply would not have been able to get on the ladder.”

Figures from Mortgageforce also show that some first-time buyers were putting up a smaller deposit.

First-time buyers contributed an average 24% deposit in November, against a six-month average of 28%.