An array of 90% LTV deals were launched last week, but lenders have warned that house prices and mortgage lending will remain subdued over the year.
The Bank of England’s March Trends In Lending report published last week shows the amount of new mortgage lending available to households was broadly unchanged in 2010 Q1. Within that, mortgage availability rose slightly for borrowers with high LTVs.
But lenders expect the availability of mortgages to remain broadly unchanged over the next three months, with a small rise expected in maximum LTV ratios.
Abbey for Intermediaries laun-ched a two-year fixed rate up to 90% LTV last week exclusively for brokers. It is available at 6.75% for purchases and comes with a £495 upfront booking fee.
Openwork is also offering an exclusive two-year fixed-rate pro-duct from Halifax of 6.49% up to 90% LTV and £500 cashback.
The Bank’s survey also shows that demand for remortgaging fell in Q1 2010 largely because of the attractiveness of lenders’ SVRs.
The report says: “In recent discussions major lenders expected remortgage activity to remain low, which some saw as partly reflecting a lack of incentive to move from low SVR mortgages, to which many shorter fixed term mortgages had reverted on expiry.”
According to the Bank gross lending for house purchases in-creased in March to £9.9bn, up from £9.6bn in February. The Bank’s data comes from the six major lenders – Banco Santander, Barclays, HSBC, Lloyds Banking Group, Nationwide and Royal Bank of Scotland – which together accounted for 75% of mortgage lending at the end of 2009.