View more on these topics

Small deposit buyers could pay 70% more, says AmTrust

Borrowers will small deposits are facing monthly mortgage repayments up to 70 per cent higher than those who can put down a 25 per cent deposit.

The AmTrust Mortgage Loan to Value Tracker shows that first-time buyers with a 5 per cent deposit are paying significantly more for their mortgages.

Those with a 5 per cent deposit face average monthly repayments of £790, compared to a typical repayment of £466 for those with a 25 per cent stake in their home.

Moreover, those with a 75 per cent LTV mortgage have seen their monthly payment fall from £468 at the end of 2016, while the monthly payment for those with a 95 per cent LTV mortgage has leapt from £762 over the same period.  

The average interest rate among those with a 25 per cent deposit has fallen from 1.9 per cent to 1.37 per cent over the past year.

Meanwhile, those with a 5 per cent deposit, have seen their average rate climb from 3.92 per cent to 4 per cent over the same period.

Over a year, it means those with a small deposit are making total repayments of £9,480, some 69.5 per cent higher than the annual payment of £5,592 made by those with a larger deposit.


Analysis from AmTrust also shows there are far fewer products available to those with a small deposit. Just six products are available to borrowers with a 5 per cent deposit buying a house worth £157,637.

That compares to 873 products available to those buying the same house with a 25 per cent deposit.

AmTrust International commercial director Simon Crone says: “As 2017 has progressed the mortgage price war which appears to be raging has not taken in those seeking high LTV mortgage products.

“We would like to see more options for low-deposit borrowers, with lenders utilising private mortgage insurance to help ‘average first-timers’ purchasing homes at average prices secure access to far more than at best half a dozen product options.”


Bank of England BoE Bank 480

Rate rise of up to 3% predicted by early 2020s

A former Bank of England Monetary Policy Committee member has predicted that interest rates could rise to 2 or 3 per cent by the early 2020s. Now senior economic adviser at PWC, Andrew Sentance (pictured) was speaking at the Building Society Association conference in London earlier today, and also estimated that the UK will lose about […]


Wealth accumulated via mortgage repayments reaches record high

Wealth accumulated by homeowners via mortgage capital repayments reached a record £62.7bn in 2016, according to a white paper from the Equity Release Council. The total represents an increase of 54 per cent from £40.7bn in 2005. Total homeowner equity in England reached an unprecedented £2.6tn in 2016, according to the paper entitled ‘Equity release […]


Tread carefully with lifetime lease options

Following the growing coverage of so called sell-and-rent-back deals, I’ve been approached by a number of colleagues who have come across similar plans.

India Election Update

What a difference six months makes. Speaking in September last year, we had warned of ‘excessive pessimism’ afflicting the market’s perception of India. Since then, responsible central bank policy from the Reserve Bank of India (RBI), alongside improving global growth, has meant that India’s macro environment is strengthening quickly. The current account deficit has shrunk, inflation is falling and the government has embarked on a heavy dose of much needed fiscal consolidation. As a result, the rupee has been one of the strongest global currencies this year while the market has touched all-time highs, rallying by more than 20 per cent (GBP) since September. This begs the question: are we now in a period of ‘irrational exuberance’? Not yet.

Top seaside property hotspots revealed

Like to let beside the seaside? The latest research from LendInvest looks specifically at coastal towns to find which areas offer the top average rental yields to landlords. Where are the top seaside postcodes for landlords? The interactive map below looks at the highest rental yields along the UK coast. According to the data, Hull, […]


News and expert analysis straight to your inbox

Sign up