Will 85% 90% LTV return anytime soon with mainstream lenders?

IAMIAM

Or is this the normal? Was this what it was like in 2008 crash etc? No lending beyond 75% LTV? House Prices Reducing....
Just after opinions and past experience. Mortgage rates are definitely increasing weekly on new products....

Carl2510

Pretty sure there is still both 

IAMIAM

Like 10 compared to 200 plus

robrymond

I'm curious who lends 5x still. We are hedging our bets on 85% LTV but ones where we can borrow 5x due to missing out on Help to Buy.

RTC87

IAMIAM said:

Or is this the normal? Was this what it was like in 2008 crash etc? No lending beyond 75% LTV? House Prices Reducing....
Just after opinions and past experience. Mortgage rates are definitely increasing weekly on new products....

House prices are definitely not reducing, they just keep climbing at the minute. Even if I look around my local area prices are crazy with almost everything being downvalued come mortgage valuation time. 

I'm hoping that later next year interest will settle down again as banks will be more actively trying to lend but while there is uncertainty I don't see anything changing.

IAMIAM

RTC87 said:

IAMIAM said:

Or is this the normal? Was this what it was like in 2008 crash etc? No lending beyond 75% LTV? House Prices Reducing....
Just after opinions and past experience. Mortgage rates are definitely increasing weekly on new products....

House prices are definitely not reducing, they just keep climbing at the minute. Even if I look around my local area prices are crazy with almost everything being downvalued come mortgage valuation time. 

I'm hoping that later next year interest will settle down again as banks will be more actively trying to lend but while there is uncertainty I don't see anything changing.

This is exactly the same near me. Prices are suddenly 10-15k above realistic value. However, the offers are asking price and over when enquiring. Mainly due to stamp duty relief, sellers I feel are increasing prices. This is on top of mortgage interest rates increasing month on month. 

[Deleted User]

Nationwide just cut their 90% mortgages to 85% for anyone self employed so i guess this gives the indication that they are not too confident that the next few months will be stable for self employed people.   Most brokers i speak to dont expect 90% to return until after the stamp duty cut activity has died down.  

Also will be interesting to see what happens to property values when the demand isnt as high as it is just now. Another reason lenders are being cautious

ACG

85% is more or less readily available now.

I was on a conference last week and they suggested that 90% will not be mainstream again until at least Q2 next year. Their reasoning was:
1) Mortgage lenders are busy. They do not need to be taking the risk at 90% at the minute.
2) There is a risk that house prices could drop if redundancies keep increasing. They were saying It is expected redundancies will keep rising but in a manageable way and in jobs that will not have too much impact on the economy. Stamp duty holiday ends in March, HTB scheme changes at the same time - so all in there is a risk there could be a knock on effect. But obviously nobody knows so lenders are being a little cautious. 

Ready_To_Roll

ACG said:

85% is more or less readily available now.

I was on a conference last week and they suggested that 90% will not be mainstream again until at least Q2 next year. Their reasoning was:
1) Mortgage lenders are busy. They do not need to be taking the risk at 90% at the minute.
2) There is a risk that house prices could drop if redundancies keep increasing. They were saying It is expected redundancies will keep rising but in a manageable way and in jobs that will not have too much impact on the economy. Stamp duty holiday ends in March, HTB scheme changes at the same time - so all in there is a risk there could be a knock on effect. But obviously nobody knows so lenders are being a little cautious. 

85% is available but rates have risen to over 3% in a lot of cases, frustrating when I was offered 1.5% a few months ago. Do you think rates are likely to reduce again anytime soon? 

Thrugelmir

No. The current "crisis" is far from over.  

[Deleted User]

Ready_To_Roll said:

ACG said:

85% is more or less readily available now.

I was on a conference last week and they suggested that 90% will not be mainstream again until at least Q2 next year. Their reasoning was:
1) Mortgage lenders are busy. They do not need to be taking the risk at 90% at the minute.
2) There is a risk that house prices could drop if redundancies keep increasing. They were saying It is expected redundancies will keep rising but in a manageable way and in jobs that will not have too much impact on the economy. Stamp duty holiday ends in March, HTB scheme changes at the same time - so all in there is a risk there could be a knock on effect. But obviously nobody knows so lenders are being a little cautious. 

85% is available but rates have risen to over 3% in a lot of cases, frustrating when I was offered 1.5% a few months ago. Do you think rates are likely to reduce again anytime soon? 

Why would they reducr them?  They are as busy as they wabt to be an are making more money on each mortgage than they were 12 months ago