High LTV Mortgage Rates Continue to Fall
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High LTV Mortgage Rates Continue to Fall

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Carl Shave Carl Shave | January 21, 2016

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As the new year starts, figures suggest that the landscape for first-time buyers looking to make their first step onto the housing ladder has improved slightly in recent months. Wage growth and record-low mortgage rates have encouraged more potential buyers to make the bold move to take the plunge, but research also shows that high loan-to-value mortgage rates have continued to fall even further. On the whole, the average two-year fixed rate remained unchanged, standing still at a record low of 2.56%, however, this trend is not reflected when it comes to individual LTVs. All LTV deals above 80% have fallen further month with 95% LTV posting the most significant reduction of 0.04%, now standing at 4.28%. Other rates above the 80% threshold also fell, with average 90% and 85% rates both falling by 0.03% to 3.08% and 2.58% respectively. It was the average rate at 80% LTV that posted the smallest reduction, falling by 0.01% to 2.38%. The figures reflect positive news for first-time buyers, with more suitable mortgages becoming available, and making it easier to obtain the required deposit, with figures suggesting that it is becoming simpler to acquire a mortgage. With demand for high-LTV lending intensifying, it has been suggested that this pattern will be an important feature of the mortgage market in months to come.

The Expert’s View

With rates at an all-time low and financial institutions still looking to lend, mortgage options have never been so good for all borrowers alike. Loan to value still drives the level of rate a borrower will be able to source but, it is at the higher end of the scale where the biggest improvements have been seen. Mortgage rates being offered for those with deposits of 10% or less have dropped sharply over the last couple of years with short-term fixed rates in the current market hovering at as low as 2.25% with a 10% deposit, and now close to 3.7% with the entry-level deposit of 5%. The larger decreases in rates at this end of the loan to value bracket just shows the confidence lenders now have in this sector and their commitment to attracting this business. If you would like to discuss your possible mortgage rates, then get in touch with the Just Mortgage Brokers team today. You can call us on 0800 114 3901 or use our contact form. Image Source