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Mortgage flow starts to ease

publication date: Jun 18, 2010
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Hannah-Mercedes SkenfieldThe number of mortgages available to property buyers is at its highest level since 2008, particularly for those who do not have a large deposit such as first time buyers, research shows.

Analysis by comparison site,, shows the number of mortgages available at 85 per cent LTV is at its highest since October 2008 and the number of mortgages available at 90 per cent LTV is at its highest since December 2008.

“These are positive signs for people who can only muster a small deposit, or have little equity built up in their home. For too long the supply of mortgages to this group of people has been too limited,” said Hannah-Mercedes Skenfield, mortgages channel manager at

She welcomed the launch of a new range of 85 per cent and 90 per cent deals from the Post Office offering a two year fixed rate at 5.45 per cent with a £999 fee. “This should really help stimulate competition and get this market moving again. One of the most telling trends of the last two years has been lenders’ obsession with equity. The simple fact is that plenty of people can afford mortgage repayments but struggle to save the many thousands of pounds usually required for a 20 to 30 per cent deposit. This means people have been needlessly locked out of the mortgage market,” she added.

New buy to let mortgage products recently released onto the UK market indicate that lenders are easing up on landlords and that the lettings market could be on the up. The buy to let market has stalled but it now looks as though things may change, as The Mortgage Works has launched a range of fixed rate and tracker BTL mortgages for 80 per cent LTV.