Bovis in talks about 95% LTV deal
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House builder Bovis Homes is in discussions with lenders about offering a 95% LTV mortgage.
In June last year the house builder launched a 90% LTV deal with Woolwich, exclusively for people buying a Bovis home.
As part of the deal Bovis provided mortgage indemnity protection for lenders in the event of borrowers defaulting on payments.
In an interim management statement last week, the developer said it is trying to identify ways to encourage lenders to support home buyers by offering 95% LTV deals. It is looking again at providing some form of mortgage indemnity protection to lenders.
Kevin Wilkins, group marketing director at Bovis Homes, says it is still gauging lender appetite for higher LTV loans.
He says: “I would love to say that we are planning to launch a 95% LTV deal in the near future, but we are still in the early stages and approaching the relevant lenders who might be interested.”
He says it is hard to get lenders to offer higher LTV deals, especially for the new-build sector.
In February Taylor Wimpey launched a 95% LTV first-time buyer mortgage with Melton Mowbray Building Society and Saffron Building Society.
Meanwhile, latest figures from Moneyfacts show the increased appetite of lenders to offer higher LTV deals has put the cost of a 90% LTV mortgage below 6% for the first time since March 2008. The average rate for a two-year fix at 90% LTV is now 5.98%, 0.40% below a year ago.
The number of lenders offering 90% LTV deals rose from 31 in May 2010 to 48 this month.
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