Mortgage News
Shortage of higher LTV deals leaves FTBs struggling
The number of mortgages available for first-time buyers and borrowers with smaller deposits has fallen significantly over the last year.
According to research from Moneysupermarket.com, the number of 90% LTV mortgages has fallen by 26% from 330 products to 244 over the last 12 months.
Meanwhile, the number of mortgages available up to 95% LTV has fallen by 43% from 49 products to just 28 over the last six months.
A number of lenders that were offering 95% mortgages during that period have since withdrawn them from the market. These include Cambridge, Ipswich, Nottingham, and Skipton Building Societies.
Looking specifically at loans for first-time buyers, the comparison website said the number of mortgage products have fallen by 31% from 1,786 to 1,225.
Clare Francis, mortgage expert at MoneySupermarket said: “Our analysis shows the continuing difficulty facing first-time buyers and those with smaller deposits looking to find a suitable mortgage.”
Episode 6: What’s next for the industry? : Powered by Partnership podcast from Newcastle for Intermediaries
Sponsored by Newcastle for Intermediaries
Francis added that despite the launch of the Funding for Lending Scheme, there are few signs that the initiative is helping those with small deposits.
“It is still early days and we won’t see any data on the impact of the initiative until the end of the year, but so far there is little to indicate that the scheme will kick start the beleaguered mortgage market.”