With good news for first time buyers, those looking for remortgages, mortgage advisors and those looking to take CeMAP training courses, the 90 percent mortgage has returned this week after disappearing for the last couple of months during the credit crunch.

The first to reintroduce this level of mortgage was FIrst Direct on Wednesday, the day before the Bank of England cut the interest base rate.  First Direct is the internet arm of HSBC and is offering a lifetime tracker mortgage with 1.69 over base rate, meaning its initial rate is just 3.69 percent.  In addition, it offers up to 90 percent LTV and a relatively low fee of just £399.

No to be outbeaten, Cheltenham & Gloucester has also returned with two 90 percent mortgages deals, both fixed rate mortgages, one with a 2.5 percent fee, so only really attractive if you are borrowing a low amount, but another that will be more attractive to first time buyers is 5.69 percent with a £1,000 fee.

This is great news for the mortgage market as the market has been forced to slowdown as lenders have been requesting a 25 percent or more deposit in the last couple of months.  Other lenders may follow as these deals will prove very attractive.

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