Number of 95% LTV deals at a four-year high
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The number of 95% LTV mortgage deals available to first-time buyers is at the highest level since before the financial crisis, according to the Mortgage Advice Bureau.
There are currently 59 deals available from 21 different lenders, up from just 25 in February 2011, nine back in 2010, and only three at the same time in 2009.
The Mortgage Advice Bureau suggests there could be over £210m worth of mortgage finance available to first-time buyers with a 5% deposit.
The brokerage says based on the average house price bought by first-time buyers, this is sufficient for over 2,000 first-time buyers to buy their first home right now.
Brian Murphy, head of lending at Mortgage Advice Bureau, says first-time buyers are being held back from taking up these deals only because they are unaware that they are available again.
He says: “Well over 85% of young renters aspire to become homeowners but the vast majority of these say the fact they cannot raise a deposit is the key reason for not buying.
“There is a widespread perception that a minimum 20% or 15% deposit is required and they just don’t realise that there are now a lot more competitive 90% and 95% LTV mortgages back on the market.”
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