Low deposit mortgage deals double as lenders return to market
There are 80 mortgage products available to borrowers today with a deposit or equity of 10% required, according to Moneyfacts.
At the start of September, there were only 44 deals available on the same basis.
In the past week alone, the number has jumped from 65 to 80, the data revealed.
Atom Bank, TSB and Platform are among the players to have added 90% Loan to Value (LTV) mortgages to the market this week.
And Nationwide today announced it would expand lending at this level beyond first-time buyers.
The market for high LTV lending (low deposit) collapsed as the pandemic struck earlier this year, leaving many borrowers who could not scrape together bigger deposits with no option but to delay transactions.
In recent months, some lenders returned to 90% LTV lending for short stints of just a couple of days or, in some cases, only hours in an effort to manage volumes.
As more lenders filter back into the space, the pressure appears to be easing.
However, lending at 95% LTV remains very limited with still only eight products currently on the market.
Eleanor Williams, spokesperson at Moneyfacts, said: “It is really encouraging that we are beginning to see more lenders relaunch products in the 90 per cent LTV bracket, especially for those borrowers with lower levels of deposit or equity who may have felt they had little to no options to move forwards with of late.
“We have seen a few lenders put their toe into the water of high LTV lending with short-term, limited edition products which were only on offer for a day or so, therefore seeing further providers enter this arena could be demonstrating that mortgage providers are managing their operational demands and are keen to cater to these borrowers.
“Those who are keen to take advantage of one of these 90 per cent LTV deals could do well to secure the support and guidance of a qualified, independent adviser who will be aware of the most up to date products available and be on hand to help borrowers navigate the mortgage maze.”