First-time buyers who are looking for their first home and have just a 5% deposit will be disappointed to find the choice of mortgage deals available to them has dropped month-on-month, despite other high loan-to-value deals coming back to the market. Borrowers with a 5% deposit may now be considering whether to double their deposit to find cheaper deals and greater choice.
The latest research fromย Moneyfacts.co.ukย reveals that despite a gradual rise in the number of fixed mortgages of between 85% and 90% loan-to-value, the number of deals at 95% loan-to-value has fallen since last month.
Rachel Springall, Finance Expert atย Moneyfacts.co.uk, said:
โWhile it is encouraging to see some higher loan-to-value deals return to the market at 85% and 90% loan-to-value, it has so far been slow and steady progress. At the same time, borrowers who have only mustered a 5% deposit to get onto theย propertyย ladder will find very few fixed rate mortgage deals on the market available to them.
โAs lockdown eases, individuals return to work and attempt to discover normality again โ they may well be starting to house-hunt. However, it may be a bit premature for them to buy a home imminently and instead they may wish to wait for more competition to return to the mortgage market for low deposit deals. Alternatively, if borrowers have a bit of extra disposable income and the ability, they would be wise to raise their deposit to 10% to find a greater choice of deals for a lower cost.”
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