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Strict criteria sees 95 per cent LTVs make up fraction of Trussle completions

  • 26/08/2021
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Strict criteria sees 95 per cent LTVs make up fraction of Trussle completions
Just one per cent of the mortgages Trussle completed in July were 95 per cent loan to value (LTV) products, as the broker firm claimed stricter criteria were shutting borrowers out.


Mortgages for those with a five per cent deposit are usually subject to requirements such as higher credit scores or a disregard for gifted deposits. Some property types are also disallowed, including flats and new-build homes. 

While borrowers are not always able to obtain a 95 per cent LTV mortgage because of such criteria, level of provision has risen to 49 lenders offering a deal. However, this still remains below 2019 levels, when there were 372 options on the market in July, and compares to a peak in November 2019, when 949 were available.  

Interest in 95 per cent LTVs has risen, with enquiries for this mortgage-type accounting for 26 per cent of new queries at Trussle during the month. 

First-time buyers made up the majority of leads, with a 60 per cent share. Next-time buyers accounted for 34 per cent of leads, and borrowers who were remortgaging made up nine per cent of enquiries. 

High LTV mortgages proved popular in general, Trussle said, with a tenth of completions in July 90 per cent LTV deals. 

Miles Robinson, head of mortgages at Trussle, said: “The return of 95 per cent mortgages earlier this year was greeted with much anticipation. With greater application scrutiny and soaring house prices, first-time buyers were facing a challenging market and these high LTV deals are crucial to ensuring home ownership remains an accessible dream for all.  

“There is clearly an appetite for high LTV mortgages, as we have seen significant demand for 90 per cent LTV deals, however, after making a real comeback in March it is disappointing that 95 per cent deals are failing to make the difference we hoped to see.” 

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