More mortgage lenders have announced that they will be reintroducing their 95% loan-to-value (LTV) products, as normality starts to return to the housing market.
The Nottingham and Dudley Building Societies are the two latest major lenders to restore these products to their slates. The 95% LTV product on offer from the former will provide borrowers with a five-year loan at a fixed rate of 4.10%, while the one on offer from Dudley is a five-year loan with a fixed rate of 3.99%. This loan will be available to people in Dudley, Birmingham, Wolverhampton or Walsall who are looking to buy or remortgage.
Speaking to Ft Adviser, Nottingham’s Intermediary Sales Head, Nikki Warren-Dean, said:
“A year on from last lending at 95% LTV we are pleased to have this product available. We’re expecting this product to be popular so our message to brokers is to submit well packaged cases to us as soon as possible.”
Aaron Strutt from Trinity Financial said that the reappearance of these mortgage products on the market would help make it a bit easier for those hoping to buy their first homes to get onto the ladder. He went on to add that they would need to be able to pay a top rate to get access to these loans with low deposits, however.
According to Moneyfacts stats, there are now 112 95% LTV products available.
Any product that can help first-time homebuyers afford a house is something that all mortgage advisors with a CeMAP qualification will welcome.