First Home Buyer and LTV

laffer

This is more a discussion point although I am happy to be pointed in the direction of some decent deals if anyone knows of them. As a prospective first home buyer I continually get frustrated reading articles in the mainstream press about 'mortgage sales'. Most of these mortgages come with a LTV of 40%. This amount is nigh on impossible to achieve for the average first home buyer without significant help from others or the lottery. So hows does a first home buyer get into the market these days with the standard 10% deposit. There are some deals around but the interest rates are sky high. It used to be considered that 10% was a good deposit. With house prices slowly creeping back up surely the 40% LTV days should be numbered?

poppy10_2

A 40% deposit is only required for a very few ultra-low rate deals deals. You can still get perfectly good rates with just a 15-20% deposit, which should be within the reach of any potential homebuyer.