Search

Mortgage rates drop to record lows for small deposit borrowers


Interest rates available on mortgages available to borrowers with deposits of just 5% have fallen to record lows, according to research from Defaqto.

The firm pointed out that over the last year the average interest rate on a 95% loan to value (LTV) two-year fixed rate deal has dropped from 3.98% to 3.46%, while rates available on three- and five-year deals have also fallen over the same period.


The increase in competitive deals for low deposit borrowers has coincided with a jump in the number of such products in the market. Defaqto noted that there are now 290 95% LTV deals available, up by almost 50% from the 199 deals on the market 12 months ago.


There has also been an increase in the number of lenders offering these deals from 52 to 58.


Brian Brown, head of insight at Defaqto, pointed out that buying a home is a big investment, and rising prices have kept home ownership out of reach for many.


He added: “It looks like the cost of buying a home has just got a bit easier for first-time buyers as prices have finally stopped rising and mortgages are cheap.”


The results echo data from AmTrust and Moneyfacts which found 95% LTV deals were increasing in number and falling in rate.


According to the latest data from the Office for National Statistics, annual house price growth has dropped to the slowest rate seen since 2013, while E.surv has suggested the jump in mortgage approvals seen in January was driven by borrowers with small deposits.


Source: Yourmoney.com



19 views

CONTACT

CALL US NOW: 01702 864848

Mon - Fri: 9am - 8pm   ​​Saturday: 9am - 4pm

Hours of Operation

POP IN:

120 Prince Avenue, Westcliff-on-Sea, Essex SS0 0NW

WHY NOT DROP US AN EMAIL:

By hitting 'send' you are agreeing for your details to be stored on our database, which may then be used for marketing purposes.

THE INTERNET IS NOT A SECURE MEDIUM AND THE PRIVACY OF YOUR DATA CANNOT BE GUARANTEED

  • White Facebook Icon

FIND US ON FACEBOOK

Mortgage Monster is a trading name of Just Mortgages Direct Ltd, which is an appointed representative of Openwork Limited which is authorised and regulated by the Financial Conduct Authority. Some Buy to Let Mortgages and Commercial Lending are not regulated by the Financial Conduct Authority. Just Mortgages Direct Ltd registered office: Colwyn House, Sheepen Place, Colchester, Essex, CO3 3LD Registered in England & Wales No 2412345. 

 

The information on this website is for use of residents of the United Kingdom only. No representations are made as to whether the information is applicable in any other country which may have access to it.

FISK BRANDING & DESIGN