90 per cent LTV mortgages drop in price


Quarterly product data from Mortgage Brain have indicated that the cost of mainstream 90 per cent loan-to-value has dropped compared to three months ago.
The advent of 90 per cent loan-to-value has reflected the demand in the market of cheaper deposits, as first time buyers struggle to pull the funds together to overcome the hurdle.
The breakdown of all the main products on the market in the UK found that the cost of a two year tracker mortgager with a deposit of just 10 per cent is now per cent cheaper overall than it was in October 2015.
A 90 per cent two-year fixed mortgage at a rate of 2.94 per cent interest is now also 4 per cent cheaper than in October. This means that over the last year, since January 2015, the price of this kind of mortgage has dropped by 11 per cent.
This is a huge drop in just 12 months, and it indicates how much the market needs these cheaper mortgages for homes to get sold.
At the other end of the scale though, there has also been a huge saving on the lowest rate five year fixed rate mortgage, with 60 per cent loan-to-value. Since October, the price on this has dropped 7 per cent, appealing to those either remortgaging, or with massive savings.
These changes not only mean that mortgage should be more accessible to people who have never owned a property, but it should also help people who are on a high interest mortgage at the moment to remortgage and find a better deal.

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Finding the best mortgage advisers in your area is easy. Whether you're looking for buy to let, a residential mortgage, or a commercial loan, just enter your location into the form and answer a few questions. Then sit back and let the backend system do all the legwork to put you in touch with independent mortgage advisers near you!

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