You are here: Home - Mortgages - First Time Buyer - News -

Small deposit product numbers hit record high

Written by: Christina Hoghton
The number of two-year fixed rate mortgage deals available to borrowers with just a 10% deposit or equity stake is at a record high level, research reveals.

Those who need to borrow up to 90% of the property’s value – usually first-time buyers or second steppers – have more choice than ever before, according to financial information site, Moneyfacts.

There are 275 deals on the market right now for those with 10% upfront, compared to just 101 five years ago.

There has also been a massive drop in interest rates on 90% loan-to-value mortgages since 2012, which now average 2.63% compared to 5.47% five years ago.

Charlotte Nelson, finance expert at Moneyfacts, said: “This is great news for borrowers with small deposits who have felt almost ignored by the market, as not only have rates at 90% LTV fallen to an all-time low, but the number of two-year fixed rate mortgages available has seen a 29% increase in just one year.

“With lending at higher LTVs now more the norm, the 90% tier has become a key target for lenders that are looking for a new avenue in which to compete and stand out from the crowd, as other parts of the market start to become saturated.

“The 90% LTV bracket is often considered for first-time buyers, but many borrowers who took out a 95% LTV deal a few years ago could now be starting to weigh up their options for remortgaging into this section of the market. Providers that don’t want to lose a chunk of their mortgage book therefore have to up their game by not only offering better choice but also lower rates.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

Everything you need to know about being furloughed

Few people had heard of ‘furlough’ before March 2020, but the coronavirus pandemic thrust the idea of bein...

Coronavirus and your finances: what help can you get in the second lockdown?

News and updates on everything to do with coronavirus and your personal finances.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
Dealing with probate: which banks make it harder than others?

When it comes to dealing with a person’s estate on death, some financial organisations make the process harder than others,...