95% LTV mortgages - 5% deposit mortgages - 2021

K_S

12/04/2021 - PLEASE NOTE: THIS HEADER POST IS NO LONGER UPDATED AS THERE ARE NOW A GOOD NUMBER OF 95% LTV LENDERS AND PRODUCTS IN THE MARKET AND UNFORTUNATELY FAR TOO MANY 95% LTV PRODUCTS TO ACCURATELY KEEP TRACK OF

Now that we've had notification of the first 95% LTV mortgages coming back after a very long time, I thought it would be useful to keep a running tracker of lenders coming back into the market and any criteria highlights. Here is the link to the MSE page about the same https://www.moneysavingexpert.com/mortgages/new-mortgage-scheme-for-5-deposit/

I will do my best to keep this header post updated as lenders start releasing 95% products for standard purchases, whether that is through the mortgage guarantee scheme or not. Please note that I'm only including mortgages for standard purchases - no family assist, equity schemes, new-build only, regional schemes, etc.

*Please note that this list may not be complete as the 95% space is getting busier by the day

----------------------------------------------------------------------------------------------------------------------

• Accord - from 17 March 2021 - Intermediary only, FTB only, up to 500k loan size, max LTI 4.49x, excludes new-builds/flats/NI, only one product announced : 3.99% 5-year fix, £995 fee, free val, not through the mortgage guarantee scheme

• Bank of Ireland - from 18 March 2021 - Intermediary only, available to FTBs and home-movers, 150-500k loan size, max LTI 4.49x, excludes all new-builds, only one product announced : 4.05% 5-year fix, no product fee, not through the mortgage guarantee scheme

• Skipton - 5 year fix at 4.09% (no fee), 2-year fix at 3.95% (no fee) (available for shared ownership new-build flats and houses). Maximum LTI of 4.49x, purchases only
  

• Aldermore - 2-year fix at 5.08%, 5-year fix at 5.28%, both with £999 product fee. Purchase only, available to FTBs and homemover. It *looks* like it's available for new-builds but I can't say for sure. Limited time only. Now Withdrawn
  
• Coventry - 5-year fix at 3.89% (£999 fee) and 4.09% no-fee Purchase only
• Danske - 5-year fix, 2-year fix at 4.40% (valuation fee, with cashback), term tracker variable rate product also available Purchase only 
• TSB - 5 year fix, 10 year fix, 5 year reducing-rate product (FTB only) - purchases only, houses and bungalows only, LTI cap of 4.25x (up to 40k income) and 4.49x otherwise
  

lonibra

That was quick! I though it was only in April. 

ACG

According to KS this is not through the guarantee scheme being launched next month - which is interesting. It might not be all that beneficial to lenders if they are already passing up on it. 

ukri

If that is the non mortgage guarantee rate, then it looks like rates will move downwards from here as more banks come on.

Mark_1986

3.99% on a 5-year fix... well it's a start I suppose 

RelievedSheff

ukri said:

If that is the non mortgage guarantee rate, then it looks like rates will move downwards from here as more banks come on.

I was surprised to see the rate was as low as 4%!!

ukri

RelievedSheff said:

ukri said:

If that is the non mortgage guarantee rate, then it looks like rates will move downwards from here as more banks come on.

I was surprised to see the rate was as low as 4%!!

The same. It bodes well for high LTV borrowers looking to buy in the coming months.

ACG

ukri said:

If that is the non mortgage guarantee rate, then it looks like rates will move downwards from here as more banks come on.

Do you think? 
I think if anything it will be the other way. The government are providing an insurance policy, that presumably means it needs paying for. 

ACG

RelievedSheff said:

ukri said:

If that is the non mortgage guarantee rate, then it looks like rates will move downwards from here as more banks come on.

I was surprised to see the rate was as low as 4%!!

I completely agree. 
I was thinking at least 4.5% if not 5%. Although I suppose had it been a 2 year fixed rate, it may have been a higher rate. 

ukri

ACG said:

ukri said:

If that is the non mortgage guarantee rate, then it looks like rates will move downwards from here as more banks come on.

Do you think? 
I think if anything it will be the other way. The government are providing an insurance policy, that presumably means it needs paying for. 

That is what it seemed like to me. But you are probably right as you know how the mortgage market works better than a layperson like me. My line of thought was that if the lender can offer 4% without a subsidy, then they should be even cheaper with a subsidy.

ACG

ukri said:

ACG said:

ukri said:

If that is the non mortgage guarantee rate, then it looks like rates will move downwards from here as more banks come on.

Do you think? 
I think if anything it will be the other way. The government are providing an insurance policy, that presumably means it needs paying for. 

That is what it seemed like to me. But you are probably right as you know how the mortgage market works better than a layperson like me. My line of thought was that if the lender can offer 4% without a subsidy, then they should be even cheaper with a subsidy.

Im alright when it comes to criteria and things. The bits affected by the products, I never get to see. 
I dont think it is a subsidy though, I think it is more a sort of insurance policy - a little like what used to be referred to as a "MIG" (mortgage insurance) or you may have seen a "higher lending charge" on some old mortgage offers.