90% Mortgage – The Growth of the 90% Mortgage in 2010
90% Mortgage – The Growth of the 90% Mortgage in 2010
Moving into 2010 and mortgage rates are starting to fall which could excellent news for first-time buyers. In January lenders began to relax their lending criteria with more than 300 new products on the market since the beginning of 2010. The number of 90% mortgages available today has risen by 26%.
The Bank of England has revealed that the average rate for a tracker mortgage with a 25% deposit was 3.63% in January compared to 3.92% recorded in December 2009.
In June 2008 the interest rate for a two year fixed rate mortgage was 6.35%, but the rate has now dropped to a six year low at 3.97%.
The trend seems to be moving towards a more active market but the Council of Mortgage Lenders has warned mortgages will become very sparse once government credit guarantee schemes expire in 2014.
90% mortgages will become more available but maybe not to the levels we have seen in recent years. A period of competitive rates for a maximum 10% deposit is most welcome.
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Chris
