When will 80% LTV become slightly more similar to 75% LTV rates

IAMIAM

That seems to be the tipping point of when a rate moves from 1.5% to 2.5% in a flash! 

K_S

As high LTV product rates get more competitive, it'll filter down the bands to some extent. As to when that might happen is anyone's guess. 90% and 85% rates are already showing signs of softening over the past couple of weeks, some of it should run off on the next band as well.

I was talking to a client today who I arranged a mortgage for at 1.53% with Halifax back in June at 85% LTV. Seems like another era!

IAMIAM

K_S said:

As high LTV product rates get more competitive, it'll filter down the bands to some extent. As to when that might happen is anyone's guess. 90% and 85% rates are already showing signs of softening over the past couple of weeks, some of it should run off on the next band as well.

I was talking to a client today who I arranged a mortgage for at 1.53% with Halifax back in June at 85% LTV. Seems like another era!

Exactly my point! A few friends are waiting around who are due to remortgage Easter time but will rates drop to that level by then! 

[Deleted User]

I doubt rates will drop significantly any time soon.  40% and 25% deposit business will be run at almost loss making levels to allow them to balance their books and lend more at the 15% and 10% levels where they are making decent margins.   
Maybe a bit of competition will bring them down a notch but really I would expect them to stay around 2.5% for 15%, 3.5%ish at 10% and then 5% deposit comes back at 4.something%.   
From a lenders point of view, what is the point of taking the risk of lending at smaller deposits without the benefit of the higher profit margins? 

Carl2510

They most definitely moved up quickly I was about to apply for a 1.76% with Platform when my MA looked at what was available at the time (September 2020) by time we was about to put our app in October they shot up to 2.5% ended up going with Halifax for 1.97%. Which I’m sure by now will be nowhere near that for 80%

getmore4less

The differential between 75% and 80% is closer to 0.5% than 1% for many lenders

IAMIAM

To be honest, I have just had a review of 75% LTV and have noticed many have decided to drop rates and start competing in the league tables again this week (Nationwide/YBS/HSBC/Barclays) all reduced 75% rates this week. I presume it'll filter into 80% shortly and probably because most deals will no longer complete by the stamp duty deadline if application starts around later jan/Feb