Mortgage choice has increased for people with large deposits – but has slumped for first-time buyers and others with small deposits.
According to Moneyfacts, the number of 60% LTV loans has gone from 21 in October 2007 to 476 now.
Over the same five-year period, the number of 90% LTV mortgages has sunk from 894 to 292.
Since Funding for Lending was introduced in August, the number of 60% LTV products has gone up by 87, but 90% LTV mortgages have increased by only 29.
Sylvia Waycot of Moneyfacts said that high LTVs, which were the norm, have been replaced by ‘virtually riskless’ 60% products which are of little use to first-time buyers.
She said: “This means more lending to those who already have excess choice, whilst everyone else, it would seem, may as well be whistling in the wind.”
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