The shortage of 90% mortgages has been a problem lately. It’s not just first time buyers and home movers with a 10% deposit that are affected. There can be a knock on affect to other transactions. So the demand for 90% mortgages is there, but how are things with the supply?
Last month we covered the issues around 90% mortgages.
Although there were a couple of options available, many had to rely on alternatives. This could include assistance from family (gift or security), the Help to Buy Scheme or perhaps shared ownership.
Although there has been much debate around 90% mortgages, there were no signs that this was going to change any time soon. However, this week has seen a number of lenders enter the market.
Last month, there seemed to be only one lender offering 90% mortgages consistently. Other lenders would release products, but only on a ‘limited time only’ basis or only lend to certain areas in the UK.
This week, we have seen seven lenders offering 90% mortgages to the whole of the market which is great news.
Currently rates range between 3.39% – 3.99% on fixed rates between 2 – 7 years. Although it could be argued that these rates are relatively higher than those with a 15%+ deposit, at least the options are there.
Hopefully, as more lenders enter this space, this will drive rates down. However, one step at a time.
Another positive is that each of these lenders have their own criteria. This means not only more choice for clients, but more of a chance that their mortgage will be agreed. This is especially important for groups of people who may find it even more difficult to arrange a mortgage at the moment.
If you are looking for a 90% mortgage or need any advice, please get in touch and we will be happy to help.