Scott Picken, CEO of International Property Solutions (IPS) believes a paradigm shift is occurring: 8 years ago, people would only invest in property in their own neighbourhood. Now, investors are starting to seek the best investments globally. IPS was created 5 years ago to facilitate international investments and provide an end-to-end solution to ensure that investors can invest with confidence!

Tuesday, June 16, 2009

90% LTV mortgages are a rare breed in the UK

Permalink: 90% LTV mortgages are a rare breed
by Kay Murchie

In just two-and-a-half years, mortgages requiring a 10% deposit have almost vanished from the market making it even more difficult for first-time buyers to get on the property ladder.

First-time buyers have long since been described as a core part of the property market because without them, it is difficult for existing homeowners to move up the ladder.

Since the onset of the credit crunch, mortgages have been harder to secure without having a significant deposit.

Recent research from price comparison website has revealed that there are now just 102 mortgages for people borrowing up to 90% of their home’s value, this is down from more than 3,000 different deals at the start of 2007.

Furthermore, first-time buyers are being hit with high interest rates with the average rate on a 90% loan-to-value (LTV) mortgage currently at 6.23%.

In January 2007, this was on average 6.2%, when the base rate stood at 5%, rather than the current historic low of 0.5%.

The margin above base rate has therefore increased to 5.73%, compared with 1.2% two-and-a-half years ago.

Louise Cuming, head of mortgages at, comments: “The Government has failed to get mortgage lenders to open their books to first-time buyers.

“A 10% deposit is all most first-time buyers can hope to afford, so by pulling 90% LTV deals off the shelf, and increasing rates on the remaining deals, providers are keeping first-time buyers out of the market - which simply exacerbates market stagnation.’

The news is a blow to the property market which has experienced a raft of good news over the last 7 days.

Last week, the Council of Mortgage Lenders (CML) said the number of loans approved for house purchases in the UK rose by 16% in April compared with March.

Meanwhile, the Royal Institution of Chartered Surveyors (Rics) reported that new buyer enquiries rose for the seventh consecutive month in May, while completed sales were at their highest since August 2008.

Finally, the Halifax recently revealed that UK house prices experienced their biggest rise since October 2002.

Go to to view opportunities in the UK.

No comments:

"If you help enough other people get what they want, you can have anything you want!"

Zig Ziglars