21 Sep

Loan-to-value mortgage deals 'will increase'

Loan-to-value mortgage deals 'will increase'

The UK is likely to see cuts across loan-to-value mortgages and later, across all deals, one property expert has suggested.

Ben Wilkie, editor at What Mortgage, said that increased competition will help the property market to expand and pave the way for more favourable rates on high loan-to-value mortgages in the future.

His comments follow Woolwich's announcement earlier this week that it will introduce a one-year tracker mortgage at 1.98 per cent made up of the Barclays base rate plus 1.48 per cent, with a loan-to-value of 60 per cent.

"There has been research saying that for first-time buyers, in the last three or fourth months, every month they have to come up with three per cent less deposit for their first home," stated Mr Wilkie.

This news comes after HSBC recently reported that since it introduced a mortgage with a rate of 1.99 per cent on September 1st, call volumes have increased by 78 per cent compared with July and August.

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