Nationwide mortgage 90% LTV deals - fabulous news for cash strapped borrowers.
Nationwide mortgage 90% LTV deals
Nationwide mortgage deals have been launched offering a 2 year fixed mortgage rate for 90 per cent loan to value for all borrowers, from young first-time buyers to existing mortgage customers moving house.
The deal is offered at a rate of 5.29 per cent with a product fee of £900 or 5.69 per cent without a product fee. As the 90 per cent mortgage makes a comeback, the question is are the deals offered actually any good for borrowers with small deposits?
Several mortgage lenders are also offering high LTV deals in addition to the Nationwide mortgage products on offer. All claim to offer a lifeline to young first-time buyers and those home movers with low equity levels.
HSBC extend support for first-time buyers
The HSBC has announced that it intends to put aside £3 billion for young first-time buyers and has launched a range of new 90 per cent LTV mortgage products in support of this claim. The Yorkshire, Hinckley & Rugby and Marsden building societies have all jumped aboard and now all offer borrowers 90 per cent LTV mortgage deals.
After the credit crisis and UK recession the number of 90 per cent LTV mortgages fell dramatically. However over the last six months, there has been a resurgence in this sector of the mortgage market and, the situation for those borrowers with a small deposit is continually improving.
There are a limited number of mortgage borrowers with a large 40 per cent deposit and therefore lenders are starting to move into the 10 per cent deposit product market.
Through lenders such as the Nationwide mortgage products at high LTVs are now available and this is good news for both first-time buyers and home-owners wanting to move up the property ladder.
