More mortgages now make it easier to move
- 10th March 2010
- Buying Property News
Mortgages are now cheaper and more affordable again with lenders introducing higher LTVs and reducing rates.
The following lenders have now now launched new higher loan to value mortgages of up to 80-85% of a property's valuation
Across the mortgage market, LTVs have recently increased from 60% to 75% and 80% to 85%. The Royal Bank of Scotland Tracker and Teachers and Newcastle BS also increased their loan-to-values (LTVs) across their fixed mortgages so borrowers don't need such high deposits.
Mortgage rates have also reduced by as much as 0.1% across loans available from Lloyds, RBS and Northern Rock. Until recently state owned banks were offering the most expensive mortgages.
MoneyExpert.com reports that the number of mortgage products has increased by 88% on last year. There are now around 147 fixed rate mortgages for borrowers with a deposit of 10% or less. Whereas last year there were only 78 mortgage products.
Moneyfacts spokes person Michelle Slade says: "There are a growing number of mortgage providers who are becoming a little more accommodating with their credit criteria and this bodes well for consumers who will benefit from a growing competitive mortgage market.”
She added: “It is pleasing to see that the average mortgage rate is falling at the same time as deposit requirements are getting smaller.”
Suzanne Gray, Sales Director of ludlowthompson estate agency in London comments: "This is just the boost the property market needs giving homeowners the opportunity to go ahead and sell. We are selling property at healthy prices and demand from buyers is high. But in recent months there hasn't been enough property to meet the demand."
The availability of buy-to-let mortgages has also increased. The new ARLA buy-to-let mortgage comparison website showcases over 116 buy-to-let loans
...the average mortgage rate is falling at the same time as deposit requirements are getting smaller.
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