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Healthy remortgage choice remains in high LTV brackets, say brokers

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  • 17/04/2020
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Healthy remortgage choice remains in high LTV brackets, say brokers
Remortgage product choice above 60 per cent loan to value (LTV) remains healthy but the market is in danger of “talking itself down”, say brokers.

 

Despite a 47 per cent drop in deals available for remortgage since 4 March, there are still 1,925 products on the market, according to Moneyfacts.

The lion’s share of mortgages sit between 60 to 80 per cent LTV. Since the beginning of March the number of deals open to remortgage borrowers in this bracket has fallen by 37 per cent from 2,374 to 1,493.

At 85 per cent LTV there remains 207 deals available, after a 63 per cent fall in product numbers from 562. Furthermore, close to 150 deals are still available at 90 per cent LTV and above.

David Hollingworth, director of communications at L&C Mortgages, said: “There is still a broad choice of remortgages available in the higher LTV brackets.

“But we are in danger of talking ourselves into a 60 per cent market by giving the impression to borrowers there are no options for those with less equity who then may not bother to check if they can have a new deal.”

Hollingworth said the stand-out remortgage deals currently on the market were being offered by HSBC because of the bank’s commitment to progressing cases at all LTVs wherever possible.

And where a borrower has chosen a high LTV deal and it cannot go ahead without an in-person valuation the case can be accepted and frozen.

 

Secure the rate and hang on

Nick Morrey, product technical manager, John Charcol, said despite hundreds of product withdrawals a lot of the best remortgage deals were still available.

“There are more than 100 deals still available at 90 to 95 per cent LTV so my advice to borrowers in that bracket is secure the rate and hang on to it,” he said.

“Lenders are able to pre-approve every other part of the application and then it can be put on hold if a physical valuation is needed. If rates drop they could cancel the deal and go for a new rate. It’s a heads you win, tails you win situation.”

Morrey said all good brokers would be matching their clients’ to products that had completion deadlines suitable for their circumstances before they signed an application.

 

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