Good News For First Time Buyers
Lenders Reintroducing 90% Loan to Value Products
With Covid-19 continuing to cause economic uncertainty, lenders have taken a more cautious approach by increasing interest rates. This has not helped first time buyers make that first step onto the property ladder. The overall cost of a 2 year fixed rate mortgage will be higher compared to last year prior to the Covid-19 outbreak. Lenders though, have now started to reintroduce 90% Loan to Value (LTV) mortgages. This is good news, particularly for first time buyers who have a 10% deposit.
In addition to higher interest rates, house prices have increased. The Mortgage Broker Tool (MBT) have recently published data which shows that the affordability gap for first time buyers has narrowed. The maximum loan that lenders are prepared to offer compared to the loan applied for is the highest it has been this year. Therefore, mortgage brokers are more likely to find suitable products, particularly with the reintroduction of 90% LTV mortgages.
At Open Vision Finance, we specialise in mortgages for first time buyers, remortgages and buy to let mortgages. We are a team of independent mortgage and protection advisers with access to the whole market. It will now be easier to find suitable products, particularly those for first time buyers or with a 10% deposit. If you are looking for a mortgage, remortgage or buy to let mortgage, please contact us and we can find the most suitable products for you.
Kevin Shore CeMAP Mortgage and Protection Adviser