The average price paid for a property by a first-time buyer has risen from £169,000 to £177,000 since January of this year.
Furthermore, according to data collected by AmTrust, the average borrower taking out a mortgage at 95 per cent LTV pays close to 50 per cent more every month than a borrower taking out a mortgage at the 75 per cent LTV tier.
The firm explains that borrowers with a 95 per cent LTV mortgage pay on average £801 a month, while those with a 75 per cent LTV offering pay £543, according to its calculations.
However, the average rates between the 95 per cent LTV, and the 75 per cent LTV continue to narrow, with the difference dropping from 1.49 per cent in Q4 2018 to 1.35 per cent as of March 2019.
The firm says that the number of 75 per cent LTV products has been declining, while the number of products available at 95 per cent LTV rose between Q4 2018 to Q1 2019 – which it believes is because of a “greater appetite to lend to FTBs”.
Despite this trend, as of March 2019 there were 1,579 products available at the 75 per cent LTV tier for FTBs versus 271 at 95 per cent LTV.
AmTrust business development director Patrick Bamford comments: “The fall in 75 per cent LTV product options might be partly down to the recent announcements by a number of lenders that they are now closed for new business.
“Although it is far more likely that we are seeing lenders continuing their search for greater margin levels which means they are now far more willing to look beyond normal parameters and to improve their offering for high LTV borrowers.”