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samarnold91

Are there 90% LTV residential mortgages out there?

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Hello hubbers!

I've been speaking to a few friends about residential mortgages recently, as a few have said how 5% LTV mortgages have been popping up a bit more - although after doing some research I couldn't find any! and 10% LTV seem to be sparse too, does anyone know much about the residential mortgage market to comment whether 10% and 5% LTV resi mortgages are making a comeback?

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Hi, I’m a mortgage adviser based in Liverpool, 90-95% mortgages are currently confined to family assisted or springboard mortgages which involve your family having to deposit money in to a savings account. Alternatively you would need to be a first time buyer or go with someone like Metro Bank on a 5 year fixed at a very high interest rate. The lenders operating in this market typically dip their toe in for a brief period (I.e less than a week) then they get consumed with applications and pull their products.

Virgin Money are doing high LTV mortgages but you have to be a first time buyer and you are restricted to a 7 or 10 year fixed. 
 

The government haven’t launched the 95% guarantee scheme yet so it will be interesting to see how the market adapts to this.

In summary your friends are correct there are 90-95% deals out there, but for extremely restricted products and applicant criteria.

Hope this helps?

 

John

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On 10/15/2020 at 10:41 PM, John Carey-Shields said:

Hi, I’m a mortgage adviser based in Liverpool, 90-95% mortgages are currently confined to family assisted or springboard mortgages which involve your family having to deposit money in to a savings account. Alternatively you would need to be a first time buyer or go with someone like Metro Bank on a 5 year fixed at a very high interest rate. The lenders operating in this market typically dip their toe in for a brief period (I.e less than a week) then they get consumed with applications and pull their products.

Virgin Money are doing high LTV mortgages but you have to be a first time buyer and you are restricted to a 7 or 10 year fixed. 
 

The government haven’t launched the 95% guarantee scheme yet so it will be interesting to see how the market adapts to this.

In summary your friends are correct there are 90-95% deals out there, but for extremely restricted products and applicant criteria.

Hope this helps?

 

John

Hi John,

Thank you very much for your input! I guess many 1st time residential buyers will just have to hold put for a while until more products start being released by lenders! Unless they have bigger deposits to spare!

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My understanding is that lenders are concerned about a fall in property prices after the SDLT holiday and Covid fall out and this is resulting in lower LTVs and also in some cases lower valuations.

My advice to a FTB is to keep saving (try to get at least 10%) and wait until next spring to start looking as I believe that house prices will stagnate or fall after the SDLT holiday.

Good luck :)

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