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High LTV Rates Slashed by a Third
Evaluate Technologies have published research showing that rates for borrowers with deposits of 10% have dropped by almost a third in the past three months.
Average initial rates for borrowers at 90% loan-to-value (LTV) have dropped to 5.3% now from 7% in November, reducing monthly payments by £160 on a £150,000 loan.
The improvement in deals for borrowers at 90% LTV is due to lenders now offering tracker providing tracker deals in comparison with November 2009 when only fixed-rate deals were previously offered to customers with small deposits.
National Accounts Director at Evaluate Technologies commented: "It is a genuine sign of confidence that lenders are now willing to lend at 90% LTV and also that rates for borrowers are being cut. The revival at 90% LTV is to be welcomed and shows that gradually lenders are getting the message that if people with smaller deposits are creditworthy enough to qualify for a loan they should not have to pay too much of a premium."
