High-LTV mortgage costs fall but choice still ‘patchy’

First-time-home-house-buyers-mortgage-700.jpgMortgage rates at higher LTVs have improved marginally, but product choice continues to remains “patchy” according to new market research.

The differential between the mortgage rates charged at 75 per cent LTV and 95 per cent LTV narrowed slightly towards the year end – but borrowers are still paying around two-thirds more in mortgage costs each year at these higher LTV bands.

The AmTrust Mortgage LTV Tracker said many lenders have increased mortgage rates at 75 per cent LTV following November’s increase in Base Rate. But lenders had not typically increased the rates of their 95 per cent LTV products.

However AmTrust said that this quarterly research showed that product availability remained limited in some parts of the market, with notable fluctuations in the number of products available, depending on the type of loan and house purchase price.

AmTrust found there was more choice for those looking to buy property priced around the £163,000 mark – the average purchase price paid by a first-time buyer.

On loans of this size there were 164 mortgage products available at 95 per cent LTV, in the fourth quarter of this year. This compares to just six products available in the previous quarter. This includes both fixed rate and variable deals.

However for those taking out larger loans there has been a significant constriction in product choice. Those looking for a 95 per cent loan on the average property price – of £226,821 – have just seven products to choose from. This compares to 150 products that were available in the previous quarter.

AmTrust Mortgage & Credit business development director Pad Bamford says: “The end of 2017 brought better news for first-time buyers.” This included abolishing stamp duty (on properties up to £300,000), plus further support for affordable housing.

He says the latest findings from the quarterly AmTrust Mortgage Tacker show improvements for those first-timers with smaller deposits, as average interest rates fell slightly, while the average first-time buyer house price stayed level.


Government to build thousands of discounted FTB homes on brownfields

The government will build thousands of discounted homes for first-time buyers this year on brownfield sites, according to housing minister Gavin Barwell. The Government says that local authorities areas in England will get cash from the £1.2bn Starter Homes Land Fund for the new buildings. The thirty areas include Blackpool, Bristol, Sheffield and Luton, and […]

Mark Bullard NatWest 2014

NatWest Intermediary launches 95% HTB replacement loans

NatWest Intermediary Solutions is launching two new 95 per cent LTV house purchase mortgages to replace the deals it currently offers as part of the Help to Buy: mortgage guarantee scheme. The first new mortgage is a two-year fixed rate at 3.69 per cent and with no product fee. The second is a five-year fixed […]


‘Fixed rates could get cheaper post-Brexit,’ says Boulger

Fixed rate mortgages could fall further still following the UK’s vote to leave the EU, according to John Charcol senior technical manager Ray Boulger. The past week has seen HSBC launch a two-year fixed rate at just 0.99 per cent, albeit with a £1,495 fee. Boulger says: “The price of government stock will rise, hence […]


Comment: Not all credit repair loans are created equal

Choice and competition in the market for adverse credit mortgages is greater than at any point since the financial crisis, which is good news for borrowers who have experienced a financial bump in the road. Research by Moneyfacts in June last year showed that almost 700 adverse credit mortgage products were available, up by 167 […]


News and expert analysis straight to your inbox

Sign up