Friday, February 12, 2010
Category:
Property
According to moneysupermarket.com, an increasing number of mortgage products are now available to borrowers with less substantial deposits or less equity in their properties.
The comparison website’s analysis has revealed that since December 2009, the amount of 85 percent Loan to Value (LTV) products on offer has increased by 22 percent. This is equivalent to there being 384 products available to those with a deposit of 15 percent. It has also been revealed that those with a 10 percent deposit have 165 products available to them, which marks an increase of virtually 11 percent since December 2009.
Furthermore, it was found that rates across all mortgage products have been gradually decreasing since October 2009. Rates for products with a Loan to Value of 80 percent have reportedly fallen most significantly, with the average rate now being 0.77 percent lower than in October 2009.
Mortgages channel manager, Hannah-Mercedes Skenfield, at moneysupermarket.com commented: "Lenders seem to have started 2010 with their doors open and are clearly more open to mortgage lending than they have been for some time. The increase in products available at 85 per cent and 90 per cent is particularly encouraging for first time buyers, as scraping together a large deposit is not easy, and was the reason many prospective first-time buyers deserted the market in their droves last year.
"Whilst rates are obviously lower for those with a higher cash deposit, it is encouraging to see rates starting to drop across all LTV products. Although there are only nine products available at 95 per cent LTV, the average rate has fallen by 0.71 per cent since October. It is not all good news though; last week's announcement by Skipton Building Society increasing their standard variable rate (SVR) indicates we might see an increase in rates elsewhere in the mortgage market. This coupled with the sharp increase in inflation could lead to a reversal in this trend."
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Homeowners who have recently moved into a new property, and who are looking for funds to put their personal stamp on their new property, could consider taking out a secured loan. One of many finance options available, a secured loan for
home improvements could allow borrowers to create that ideal home to suit their individual needs and lifestyle. For example, if office space is required but not currently available, a secured loan could facilitate the conversion of a spare room or unused attic space. Furthermore, a secured loan for home improvements could also be used to landscape a tired garden in preparation for the summer months.
