Barclays re-enters High LTV Mortgage Market

Rinoa

http://www.ft.com/cms/s/2/9cc02940-ffb6-11e0-8441-00144feabdc0.html#axzz1bt59GQ8q

Barclays has re-entered the high loan-to-value mortgage market with a new range of products offering up to 90 per cent of a property’s value, after withdrawing from this part of the market three years ago.
The return to 90 per cent lending follows similar moves by other high-street lenders this year. In February, Northern Rock increased its maximum loan-to-value from 85 per cent to 90 per cent, while earlier this month HSBC confirmed it would lend a further £350m to homebuyers with deposits of 15 per cent or less this year.

The move marks the return of Barclays into the high loan-to-value mortgage market. It stopped offering these loans in October 2008, at the peak of the credit crisis.

The entrance of another lender into the high loan-to-value mortgage market will help boost the number of mortgage deals available to borrowers with small deposits, a part of the market which has started to see signs of improvement in recent months.

Easing of mortgage market continues apace. Excellent news for FTB's, home owners and an encouragement for housebuilders to build more homes.

Graham_Devon

Just another 90% product.

I'm confused as to what's so special?

Thrugelmir

Graham_Devon wrote: »

I'm confused as to what's so special?

Appears that the "Easing of mortgage market continues apace."

wotsthat

Graham_Devon wrote: »

I'm confused as to what's so special?

It was in the OP....

The move marks the return of Barclays into the high loan-to-value mortgage market. It stopped offering these loans in October 2008, at the peak of the credit crisis.

Maybe a small indication that credit conditions are easing, Barclays have growing confidence that prices aren't going to fall, they think their potential customers can afford to pay the price of not having a larger deposit.

Rinoa

Graham_Devon wrote: »

Just another 90% product.

I'm confused as to what's so special?

This is a forum dedicated to debating house prices. Can you really not see the significance of a major high street lender re-entering the 90% LTV market after a 3 year absence.

Sorry it's confusing for you Graham. Just try to do the best you can.

Graham_Devon

wotsthat wrote: »

It was in the OP....



Maybe a small indication that credit conditions are easing, Barclays have growing confidence that prices aren't going to fall, they think their potential customers can afford to pay the price of not having a larger deposit.

Y'see, this is mighty strange, hence why I am confused.

I posted that HSBC were re-entering the 90% market the other day, with a LOWER interest rate than this AND no fee's. No one suggested anything like the above, infact quite the opposite.

Who thank's the post that suggests that the two year fix at 4.49% is a sh*t deal? - Wotsthat.

Now on this thread, where another poster called Rinoa get's excited that Barclays are offering 90% on a three year fix of 4.99%....you suggest that this is all about growing confidence.

You never said that, or anything like it on my thread highlighting the better deal for 90% LTV. Hamish just got uppety that lenders were rationing and profiteering. Pimperne just went along with the crappy deal thoughtpath.

See why I'm confused? It's almost as if the stance changes dependent on who posts the thread, which surely isn't the case!??! <rolls eyes>.

https://forums.moneysavingexpert.com/discussion/3550993

Thrugelmir

Rinoa wrote: »

This is a forum dedicated to debating house prices. Can you really not see the significance of a major high street lender re-entering the 90% LTV market after a 3 year absence.

Factually incorrect. As Barclays through its Woolwich arm teamed up with the builders Bovis in 2010 offering a special 90% LTV rate deal. In May 2011 the interest rate on this deal was cut to 3.79%.

Good media spin from Barclays to make some headlines. Without actually lending an increased amount of money.

Mallotum_X

Whether it has any impact or not will depend on whether they actually issue very many 90% LTV mortgages or whether its a response to HSBC and the chance of some free advertising.

It could just be their way of saying to the government, you asked us to make things easier and look we have, but then only letting people on higher salaries buying cheaper properties actually get one.

We shall have to wait and see what they actually do, rather than what they say.

Thrugelmir

Mallotum_X wrote: »

It could just be their way of saying to the government, you asked us to make things easier and look we have, but then only letting people on higher salaries buying cheaper properties actually get one.

Very true. If people are unable to obtain the product on commercial grounds i.e. lending criteria. Then the banks can refute accusations of constraining lending.

RenovationMan

I wonder if we will see even a mild form of competition enter the mortgage market at these sorts of LTVs?

wotsthat

Graham_Devon wrote: »

Y'see, this is mighty strange, hence why I am confused.

I posted that HSBC were re-entering the 90% market the other day, with a LOWER interest rate than this AND no fee's. No one suggested anything like the above, infact quite the opposite.

Who thank's the post that suggests that the two year fix at 4.49% is a sh*t deal? - Wotsthat.

No wonder you're confused. You spend too much time worrying about who thanks what.

I thank people if I agree with them, I thank them if they disagree but participate in the debate, I thank some people just because I like their posts whether I agree or not (Loughton Monkey or Generali might fall into this bracket), I thank people because they are funny. I even thank posts in an ironic way.

I've just thanked your post - guess which category it falls into.