90% LTV mortgage market coming back to life!

K_S

Really cheered me up, this one! Halifax will have 90% LTV products for FTBs from next week. Headlines are -

- only std purchases, no new builds or schemes

- max LTI of 4.49x

- max loan of £500k

- major change in affordability assessment: even if you intend to pay off existing credit prior to completion, they will be classed as ongoing debt in the affordability calcs (thus reducing the borrowing figure)

K_S

...and so has Virgin from this Friday - 90% LTV FTB 5 Year fix, starting from 3.69%.

Good to see the space getting more competitive, should put some downward pressure on the 90% rates by the new year..

Wouldn't be surprised to see more mainstream lenders joining in, FOMO

LMJ10

This is good news, my house is up for sale and it’s ideal for a FTB. Struggled to find a buyer at the minute. 

dontknowwhattodonext

If you had a house repossed in 2012 so no longer a home owner are you classed as a FTB?

K_S

dontknowwhattodonext said:

If you had a house repossed in 2012 so no longer a home owner are you classed as a FTB?

@dontknowwhattodonext For the purpose of mortgages, the definition of FTB can differ from lender to lender.

For instance, Nationwide defines an FTB as "Applicants who haven't held a mortgage in the last three years" while for Halifax at least one of the buyers needs to never have owned a property. Hope that makes sense.

K_S

Getting better! Rates are still high (though there are signs of the increased competition taking effect, with Accord today reducing fees and introducing cashback on their 90% range) but it was good to able to have a choice of big lenders - Accord, Halifax, Nationwide, Platform, TSB, Virgin - to work from to place clients.

Hopefully the market will keep moving in the same direction in beginning of the new year.

K_S

As expected, more mainstream lenders are returning, Barclays has now jumped back in to the 90% LTV purchase space with two 5-year fixes

General criteria are -

- FTBs only (never had a UK mortgage), all applicants needs to be FTBs

- new-build houses are ok, new-build flats are not

- max loan size £500k for houses and £220k for flats

- max LTI 4.49x (subject to affordability calcs)

gabby71

Would any of the 90% ltv products currently being offered be applicable for someone with a default on their credit file?

Dandytf

Talk of Mortgage lending criteria being loosened up since 2014.
Is any percentage of unsecured Debt allowed in current existing Mortgage Customers, looking to move home and re apply for a new Mortgage.

K_S

gabby71 said:

Would any of the 90% ltv products currently being offered be applicable for someone with a default on their credit file?

@gabby71 Depends on the specifics. What kind of default, settled or not, amount, when was the default registered, etc 

K_S

Dandytf said:

Talk of Mortgage lending criteria being loosened up since 2014.
Is any percentage of unsecured Debt allowed in current existing Mortgage Customers, looking to move home and re apply for a new Mortgage.

@Dandytf Depends on how much you're looking to borrow. Unsecured debt (cc, personal loan, etc) may impact your affordability negatively. If it does to an extent that the lender can't lend what you need, then it's a no go.
But there's no blanket rule saying that £x of unsecured debt stops you from getting a mortgage. I hope that makes sense.
Hopefully I haven't misunderstood the question!