9 Apr

Return of 90 per cent mortgages hailed

Return of 90 per cent mortgages hailed

The decision of HSBC to announce it is launching new 90 per cent loan-to-value (LTV) mortgage products has been hailed by price comparison website moneysupermarket.com.

Head of mortgages at the site Louise Cuming said the move is "great news for first-time buyers trying to get on to the housing ladder and existing borrowers who don't have much equity in their home".

She added that she hoped HSBC's decision to offer such deals will encourage other lenders to increase the supply of mortgages of this kind.

The reappearance of higher LTVs such as Abbey's new 85 per cent four-year fixed deal is a good sign for the market, head of mortgages at financial advisory firm Bestinvest Peter O'Donovan said this week.

Stating that it is "excellent" to see rates "drift back up" towards 90 per cent, he commented that the absence of such deals has been "holding up" the property market.

Cookies We use cookies to ensure that we give you the best experience on our website. To find out more about our cookies policy, see our cookies policy here or in the footer.