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UK property buyer conditions improve

Wednesday 27th January 2010

Cash buyers have had the advantage for some time, but new analysis from moneysupermarket.com shows that mortgage product numbers are rising for those with lower deposits or equity in their properties.

Deals with an 85 per cent Loan to Values (LTV) have seen the biggest rise in availability since December 2009 - an increase of 22 per cent means there are now 384 products available to those with a 15 per cent deposit.

Buyers with a ten per cent deposit have 11 per cent more products to choose from since December 2009, with 165 more products available.

According to moneysupermarket.com, rates across all mortgage products have begun to creep down since October last year. Rates for 80 per cent LTV s have fallen hardest, with the average rate now sitting at 4.97 per cent, which is 0.77 per cent lower than in October last year.

Hannah-Mercedes Skenfield, mortgages channel manager at moneysupermarket.com, said: “Lenders seem to have started 2010 with their doors open and are clearly more open to mortgage lending than they have been for some time. The increase in products available at 85 per cent and 90 per cent is particularly encouraging for first time buyers, as scraping together a large deposit is not easy, and was the reason many prospective first-time buyers deserted the market in their droves last year.

“While rates are obviously lower for those with a higher cash deposit, it is encouraging to see rates starting to drop across all LTV products. Although there are only nine products available at 95 per cent LTV, the average rate has fallen by 0.71 per cent since October. It is not all good news though; last week’s announcement by Skipton Building Society increasing their standard variable rate (SVR) indicates we might see an increase in rates elsewhere in the mortgage market. This coupled with the sharp increase in inflation could lead to a reversal in this trend.”

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