Without the help of high loan-to-value mortgages some will either have spent years saving for a deposit, still find themselves living with parents or are stuck in the rental cycle. The dream of owning our own home seems way in the distance.
But are times changing?
The number of mortgage providers that include a maximum 95 per cent loan-to-value product in their range now stands at 60*, up from 53 a year ago and 13 more than five years ago, according to Moneyfacts. This has to be great news for potential first-time buyers and home movers.
A decade ago, a borrower with a five per cent deposit had just three products from three mortgage providers to choose from. Today, you have a choice of over 400 products, including 67 variable deals, from a total of 60 providers*.
More than 4 in every 5 mortgages available at a maximum 95% loan-to-value, are fixed rate mortgages, accounting for 338 products of the 405 available.
These deals enable borrowers to have the certainty of knowing what their monthly repayment amount will be. This is perhaps of particular importance to those people who are taking their first steps onto the property ladder.
With the number of high loan-to-value options now available, it’s important to seek professional advice. Your advisor will be able to find the right mortgage for you, or your loved one’s specific circumstances, should they want to take that first step onto the property ladder, which can be invaluable.
If you, or someone you know, would like to take advantage of the high loan-to-value mortgages available, please contact an Oviso advisor today.