80% Mortgages – The Rise Of 80% Mortgages
80% Mortgages Are On The Increase
According to Mortgage Brain mainstream lenders have increased their product ranges of 80% mortgages or deals with a higher LTV from 13.7% last month to 15.1%.
Fixed rate deals increased by 8% on the previous month, with variable rate mortgages increasing by 6% on the same period. However tracker mortgages continued their trend of falling for a second month by another 9%.
Mark Lofthouse, CEO of Mortgage Brain who supply a leading mortgage sourcing software system, comments, “It’s encouraging to see the number of products available to the intermediary channel stabalising, especially having seen them drop for two consecutive months. The recovery in the number of fixed rate products and the increase in the amount of higher banded LTV products is particularly encouraging and may be seen as an early indicator that confidence in the market is returning.”
Overall the number of mortgage products available has risen by 4% to 2,500 as of 3rd August 2009. Deals are at an all time low but this is the first increase after a couple of months of declining product availability. This may indicate stability returning to the market, although it is fair to say some of the new deals available are not very inspiring or reach a wide spectrum of potential borrowers.
If the trend continues a wider range of 80% mortgages will no doubt help those remortgaging and not caught up in negative equity, but realistically at current prices fist time buyers need the LTV to be over 80%. Mortgages at 100% LTV look to be a deal of the past so it may be that house prices do still need to drop considerably to assist people onto the housing ladder. At the very least over 80% mortgages are going to be rather expensive even with the all time low base rate.
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