The number of mortgages available to borrowers with a 10 per cent deposit has risen to its highest level since 2008, according to new research from Moneysupermarket.
With 312 mortgages at 90 per cent loan to value currently available, the market has seen a 17 per cent rise in such deals since June.
The average fixed rate on 90 per cent deals is also starting to fall – it’s now 5.87 per cent, an average drop of 0.17 per cent since last month. Tracker deals have risen since last year, however, but have fallen in the past month to an average of 5.5 per cent.
Clare Francis, mortgage spokesperson at moneysupermarket.com said: “There is a severe shortage of first time buyers at the moment and one of the reasons for this is down to the fact that it’s been so difficult to get a mortgage unless you’ve had a deposit of 25 per cent or more. It’s therefore encouraging to see an increase in the number of 90 and 95 per cent mortgages available.
“That said, we are still a long way off the number of products that were available pre-credit crunch and those with smaller deposits are still having to pay a higher rate of interest than those who are able to put down 25 or 30 per cent. It’s good to see things are moving in the right direction though as this should make it slightly easier for people to take that first step onto the property ladder.”
Loading ...