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Despite a more subdued period for the mortgage market last week, the latest analysis by Moneyfactscompare.co.uk reveals a handful of lenders pulled higher loan-to-value (LTV) deals.
Last week, a few lenders moved to pull some fixed deals at 90% and 95% LTV.
Hanley Economic Building Society withdrew its two-year fixed deal at 95% LTV, Principality Building Society puled selected two- and five-year fixed deals for first-time buyers at 95% LTV, Saffron Building Society stopped offering a five-year fixed deal at 90% LTV and Vernon Building Society withdrew a couple of five-year fixed deals at 90% and 95% LTV.
Since 23 May, the number of fixed mortgage deals at 90% LTV has fallen from 700 to 696. Over the same period, the number of fixed deals at 95% LTV fell from 329 to 326.
Rachel Springall, finance commentator at Moneyfactscompare.co.uk, said: “The fact that a few lenders are withdrawing some higher loan-to-value products may raise eyebrows, but we are not seeing a mass exit. However, should more deals be withdrawn at higher loan-to-values, it may come as disappointing news to those who have a limited deposit, such as first-time buyers. The deals that have disappeared last week may well resurface, perhaps when re-pricing activity picks up in the coming weeks.
“Affordable housing is very much in short supply. There need to be significant changes to turn this around, but borrowers will have to wait and see what might be announced to address this issue after the General Election. In the meantime, any borrower looking for a new deal would be wise to seek independent financial advice to find the best mortgage that suits their circumstances, such as one with a bundle of incentives providing the best overall value for money.”
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