Lenders pull high LTV mortgage products

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Last week, a few lenders moved to pull some fixed deals at 90% and 95% LTV

Despite a more subdued period for the mortgage market, analysis by Moneyfacts shows a few lenders pulled higher LTV deals.

Last week, some lenders moved to pull fixed deals at 90% and 95% LTV.

Hanley Economic Building Society pulled its two-year fixed deal at 95% LTV, Principality Building Society withdrew selected two- and five-year fixed deals for FTBs at 95% LTV, Saffron Building Society withdrew a five-year fixed deal at 90% LTV and Vernon Building Society withdrew a couple of five-year fixed deals at 90% and 95% LTV.

Since May 23 the number of fixed mortgage deals at 90% loan-to-value has dropped from 700 to 696. Over the same period, the number of fixed deals at 95% loan-to-value dropped from 329 to 326.

Rachel Springall, finance expert at Moneyfacts, says: The fact that a few lenders are withdrawing some higher LTV products may raise eyebrows, but we are not seeing a mass exit. Nonetheless, should more deals be withdrawn at higher LTVs, it may come as disappointing news to those who have a limited deposit, such as FTBs.

The deals that have disappeared last week may well resurface, perhaps when re-pricing activity rises in the coming weeks, she said.

Affordable housing is very much in short supply. There need to be significant changes to turn this around, but borrowers will have to wait and see what might be announced to address this issue after the General Election, she said.

She added: In the meantime, any borrower looking for a new deal would be wise to seek independent financial advice to find the best mortgage that suits their circumstances, like one with a bundle of incentives providing the best overall value for money.

Disclaimer: The opinions expressed by our writers are their own and do not represent the views of Getting Money Wise. The information provided on Getting Money Wise is intended for informational purposes only. Getting Money Wise is not liable for any financial losses incurred. Conduct your own research by contacting financial experts before making any investment decisions.

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