More 90% LTV mortgages have been released for two months consecutively
Good news today for buyers in Grimsby & Cleethorpes as Moneyfacts confirm that borrowers looking for a new mortgage deal now have the most number of deals to choose from since the pandemic began impacting the UK economy last March, as data shows that the number of deals is at an 11-month high.
The data, which is due to be released in the Moneyfacts UK Mortgage Trends Treasury Report, found that there are currently 3,215 mortgage deals available, which is the highest number since March 2020, at which point there were 5,222 deals in the market. (This information was correct as of 10th February and can change daily)
The biggest rise in deals over the last few months can be found on mortgages that need a 10% deposit/equity, known as 90% loan-to-value (LTV) mortgages – which are predominately aimed at this market.
For the second month running, 90% LTV mortgages have seen the largest uplift in availability. These mortgages are often a hit with first-time buyers and have traditionally been seen as higher risk for providers. This is a hugely positive step by lenders and could be an indication that lenders have confidence in the sector, despite the ongoing pandemic and the economic connotations.
When looking at mortgage deals and considering options, it is important that borrowers take into account a range of factors and not just the rate. For example, product fees and incentives may make a slightly more expensive deal a more attractive offer than a lower rate on a deal that has high product fees and does not offer any incentives.
For those unsure about which deal is best for them, speaking to an independent mortgage broker, who will be able to take the borrower’s unique circumstances into consideration when suggesting deals, may be a good option. Why not discuss your mortgage requirements with Dave Jackson of Lincolnshire Financial Services and ensure you gain enough information to decide on the best package for your personal preferences and needs?
Sources: Moneyfacts.co.uk, Estateagenttoday.co.uk
All information correct at time of publishing, 11th February 2021