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.

90% mortgages in Feb 2010