With the government announcing the end of Help to Buy in 2023, lenders will need to continue to innovate when it comes to product and criteria to help fill the LTV gap this will leave. However, the number of 95% loan-to-value mortgage products fell by 11, from 391 deals in August 2019 to 380 in September 2019, according to Moneyfacts UK Mortgage Trends Treasury Report.*
For new purchasers, and in particular first time buyers, a high LTV is an important consideration when looking for a mortgage to buy a new house.
But as house prices are still high, more products are required to help when it comes to minimising the deposit that need to be saved up. For many, even a 5% deposit can take a long time to gather together, particularly if they are already paying out for rent while they’re trying to do it.
Leek United understand the need for higher LTV mortgages and we have 95% LTV mortgages available in our residential range and these could prove very attractive as the Help to Buy scheme comes to an end. In particular many first time buyers look for a new build house or flat when they start their home ownership journey. We are able to offer 95% LTV on such properties so already have a strong proposition to offer to the same demographic that Help to Buy was developed for.
Stacey Wood, National New Build and Surveying Relationship Manager at Sesame Bankhall Group, said: “It’s fantastic to see Leek United offering 95% LTV on new build mortgages, which is something that many of our members and their clients are increasingly looking for. We will continue to work closely with our lender partners to help shape their future customer propositions in this important area of the market.”
At Leek United we also have other product features available on many products such as cashbacks and no valuation fees. These sit alongside individual underwriting on every case which can be extremely helpful when looking at how we can help a buyer within our overall lending policy framework.
It’s vital that lenders look to fill the Help to Buy LTV gap over the coming years and continue to develop mortgage products with higher LTVs and other additional benefits to help new buyers.
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