{"id":15273,"date":"2018-04-17T12:15:39","date_gmt":"2018-04-17T11:15:39","guid":{"rendered":"https:\/\/www.buyassociation.co.uk\/?p=15273"},"modified":"2018-04-17T12:15:39","modified_gmt":"2018-04-17T11:15:39","slug":"borrowers-needing-higher-ltv-benefiting-lower-mortgage-rates","status":"publish","type":"post","link":"https:\/\/www.buyassociationgroup.com\/en-hk\/news\/borrowers-needing-higher-ltv-benefiting-lower-mortgage-rates\/","title":{"rendered":"Borrowers needing a higher LTV benefiting from lower mortgage rates"},"content":{"rendered":"

The Bank of England\u2019s Credit Conditions Review shows that the mortgage market is not as gloomy as it may seem for some borrowers, despite the expected base rate rise next month.<\/strong><\/p>\n

Their figures show that higher loan to value<\/a> (LTV) mortgage rates are still going down, so borrowers looking to buy with only a 10% deposit will currently find the market in their favour.<\/p>\n

Whilst overall mortgage rates are on the rise<\/a> due to the expected base rate increase in May, the average household interest rate in March was 2.21% for a two-year fixed 90% LTV mortgage according to Moneyfacts. This is a reduction of 12 basis points since August 2017.<\/p>\n

Lenders working hard to attract borrowers in challenging marketplace<\/h4>\n

Mortgage Brain data shows that while representing the smallest product type by volume, 90% plus LTV mortgage products have shown the strongest performance<\/a> over the past two years – an increase of 106% in total, from 271 in March 2016, to 559 at the beginning of March 2018. It seems that lenders are keen to offer a helping hand<\/a> to those unable to raise large deposits, especially first-time buyers<\/a>.<\/p>\n

Platform, the intermediary mortgage brand of the Co-operative Bank, has reduced rates on select 85% and 90% LTV two and five-year fixed rate mortgages, with five-year fixed rates starting from 2.34% up to 90% LTV, with a \u00a31,499 fee.<\/p>\n

Paul Norcott, head of mortgages and insurance at The Co-operative Bank, said: “We continually review the products and rates we have available to ensure we\u2019re listing mortgages our broker partners can recommend to their customers; especially those who want a mortgage that will help them take their first step on to the property ladder<\/a> – we know that higher LTV mortgages are often what first-time buyers<\/a> are looking for.”<\/p>\n

Make the move now to benefit from low rates<\/h4>\n

Other lenders are following suit. Accord has launched seven new two-year discounted standard variable rate <\/a>(SVR) mortgages available on up to 95% LTV. Virgin’s range of 90% LTV residential mortgage products have also been launched offering reduced rates; a two-year fix at 90% LTV at 2.25% with no product fee, and a three-year fix at 90% LTV at 2.18% with a \u00a3995 fee.<\/p>\n

Leek United Building Society has also expanded its product range with two competitive five-year fixed rate deals. The first is fixed at 2.59%, with a \u00a3100 application fee and \u00a3895 product fee, while the second is fixed at 3.29% with no application or product fees. Both products are available up to 90% LTV.<\/p>\n

With the current challenges<\/a> in the mortgage market, there is no guarantee that these deals will be around long-term, so the advice for those seeking a 90% LTV deal is to make the move now.<\/p>\n","protected":false},"excerpt":{"rendered":"

The Bank of England\u2019s Credit Conditions Review shows that the mortgage market is not as gloomy as it may seem for some borrowers, despite the expected base rate rise next month. Their figures show that higher loan to value (LTV) mortgage rates are still going down, so borrowers looking to buy with only a 10%… Read more »<\/a><\/p>\n","protected":false},"author":3380,"featured_media":15281,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[26,6],"tags":[108,25,341],"acf":[],"_links":{"self":[{"href":"https:\/\/www.buyassociationgroup.com\/en-hk\/wp-json\/wp\/v2\/posts\/15273"}],"collection":[{"href":"https:\/\/www.buyassociationgroup.com\/en-hk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.buyassociationgroup.com\/en-hk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-hk\/wp-json\/wp\/v2\/users\/3380"}],"replies":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-hk\/wp-json\/wp\/v2\/comments?post=15273"}],"version-history":[{"count":0,"href":"https:\/\/www.buyassociationgroup.com\/en-hk\/wp-json\/wp\/v2\/posts\/15273\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-hk\/wp-json\/wp\/v2\/media\/15281"}],"wp:attachment":[{"href":"https:\/\/www.buyassociationgroup.com\/en-hk\/wp-json\/wp\/v2\/media?parent=15273"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-hk\/wp-json\/wp\/v2\/categories?post=15273"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-hk\/wp-json\/wp\/v2\/tags?post=15273"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}