The government have launched a 95% LTV mortgage in an attempt to kickstart the property market and get people on the housing ladder. Now, it would seem that other lenders are trying to do the same, with very competitive rates. Accord Mortgages have launched their own 95% LTV mortgages which are completely separate to what the government are offering. They have announced that they have already received a large amount of offers and they only launched the scheme last week. The intermediary-only lender is offering a 5-year fixed rate for anyone who is a first-time buyer.
Returning to the Market
Jeremy Duncombe who is the managing director over at Accord Mortgages has stated that there is a definite demand for the 95% mortgage and that it wouldn’t be surprising to see other lenders following in their footsteps. Duncombe has put out a warning, saying that the product may well be withdrawn at a short notice, to try and balance the overall demand that is expected from clients and brokers. Of course, this is completely understandable but there are other options out there if this happens. The UK government are offering their own 95% LTV mortgages, that are not just catered to first-time buyers, but also those who are looking to buy a new property.
The Bank of Ireland are Also Offering 95% Mortgages
Duncombe has stated that they hope they do not get to the point where they need to withdraw the mortgages, but right now things are looking promising. The Bank of Ireland have chosen to offer the same deal, and this has given the financial industry a lot of confidence. The Bank of Ireland and Accord Mortgages have launched their 95% LTV products before the government. The UK government have announced the scheme in the budget, but it is not open to applications until April. Duncombe says that from their point of view, they don’t believe that they are going to be using the scheme themselves. They say that they have enough capital and liquidity to take the risk on themselves.
Even though this is the case, they believe that the government scheme is helping as it means more people will sign up and more lenders will go out of their way to try and offer the same.
A Positive Change in the Property Industry
This is a real, positive change for the property market and it’s certainly going to boost the industry overall. A lot of buying and selling activity has slowed down since the start of the pandemic, purely because visits to houses have largely not been permitted. This has made it difficult for people to navigate the property industry and it also meant that agents had to find new and inventive ways to display properties. VR has been used quite a lot so far, and it has proven to be effective, but with the restrictions being lifted soon, it’s safe to say that some people are rearing to go.
More 95% LTV products are coming available to the market as we produce this article.
For more information on 95% LTV mortgage products available, please contact us on 0800 001 6515.