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Higher loan-to-value mortgages pulled from sale

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Rachel Springall, Press Officer
Rachel Springall, Press Officer / Finance Expert T: 01603 476210 E: Email Rachel
03/06/2024

Higher loan-to-value mortgages pulled from sale

Despite a more subdued period for the mortgage market last week, the latest analysis by Moneyfactscompare.co.uk reveals a handful of lenders pulled higher loan-to-value deals.

Higher loan-to-value mortgages pulled from sale

Despite a more subdued period for the mortgage market last week, the latest analysis by Moneyfactscompare.co.uk reveals a handful of lenders pulled higher loan-to-value deals.

  • Last week, a few lenders moved to pull some fixed deals at 90% and 95% loan-to-value (LTV). Hanley Economic Building Society withdrew its two-year fixed deal at 95% LTV, Principality Building Society withdrew selected two- and five-year fixed deals for first-time buyers at 95% LTV, Saffron Building Society pulled a five-year fixed deal at 90% LTV and Vernon Building Society withdrew a couple of five-year fixed deals at 90% and 95% LTV.
  • Since 23 May, the number of fixed mortgage deals at 90% LTV has fallen from 700 to 696. Over the same period, the number of fixed deals at 95% LTV fell from 329 to 326.
  • Last week, a few lenders moved to pull some fixed deals at 90% and 95% loan-to-value (LTV). Hanley Economic Building Society withdrew its two-year fixed deal at 95% LTV, Principality Building Society withdrew selected two- and five-year fixed deals for first-time buyers at 95% LTV, Saffron Building Society pulled a five-year fixed deal at 90% LTV and Vernon Building Society withdrew a couple of five-year fixed deals at 90% and 95% LTV.
  • Since 23 May, the number of fixed mortgage deals at 90% LTV has fallen from 700 to 696. Over the same period, the number of fixed deals at 95% LTV fell from 329 to 326.

 

Fixed mortgage market analysis

 

Jun-23

Jan-24

23-May-24

31-May-24

Fixed rate products

Product count - 95% LTV

209

251

329

326

Product count - 90% LTV

539

640

700

696

95% LTV

Average two-year fixed rate

6.06%

6.21%

6.20%

6.18%

Average five-year fixed rate

5.43%

5.62%

5.71%

5.70%

90% LTV

Average two-year fixed rate

5.66%

5.94%

6.16%

6.14%

Average five-year fixed rate

5.23%

5.65%

5.60%

5.59%

Data shown is as at the first available day of the month, unless stated otherwise.

Source: Moneyfactscompare.co.uk

 

 

 

Fixed mortgage market analysis

 

Jun-23

Jan-24

23-May-24

31-May-24

Fixed rate products

Product count - 95% LTV

209

251

329

326

Product count - 90% LTV

539

640

700

696

95% LTV

Average two-year fixed rate

6.06%

6.21%

6.20%

6.18%

Average five-year fixed rate

5.43%

5.62%

5.71%

5.70%

90% LTV

Average two-year fixed rate

5.66%

5.94%

6.16%

6.14%

Average five-year fixed rate

5.23%

5.65%

5.60%

5.59%

Data shown is as at the first available day of the month, unless stated otherwise.

Source: Moneyfactscompare.co.uk

 

 

Rachel Springall, Finance Expert at Moneyfactscompare.co.uk, said:

“The fact that a few lenders are withdrawing some higher loan-to-value products may raise eyebrows, but we are not seeing a mass exit. However, should more deals be withdrawn at higher loan-to-values, it may come as disappointing news to those who have a limited deposit, such as first-time buyers. The deals that have disappeared last week may well resurface, perhaps when re-pricing activity picks up in the coming weeks.

“Affordable housing is very much in short supply. There need to be significant changes to turn this around, but borrowers will have to wait and see what might be announced to address this issue after the General Election. In the meantime, any borrower looking for a new deal would be wise to seek independent financial advice to find the best mortgage that suits their circumstances, such as one with a bundle of incentives providing the best overall value for money.”

Rachel Springall, Finance Expert at Moneyfactscompare.co.uk, said:

“The fact that a few lenders are withdrawing some higher loan-to-value products may raise eyebrows, but we are not seeing a mass exit. However, should more deals be withdrawn at higher loan-to-values, it may come as disappointing news to those who have a limited deposit, such as first-time buyers. The deals that have disappeared last week may well resurface, perhaps when re-pricing activity picks up in the coming weeks.

“Affordable housing is very much in short supply. There need to be significant changes to turn this around, but borrowers will have to wait and see what might be announced to address this issue after the General Election. In the meantime, any borrower looking for a new deal would be wise to seek independent financial advice to find the best mortgage that suits their circumstances, such as one with a bundle of incentives providing the best overall value for money.”

Notes to editors

Pioneering financial comparison technology for over 35 years.

Moneyfacts Group plc is the UK’s leading provider of retail financial product data. Used by virtually every bank and building society in the UK, and supplied to the Bank of England, Financial Conduct Authority, Financial Ombudsman Service, HM Treasury, Prudential Regulatory Authority and UK Finance.

Our expert research team monitors the thousands of mortgages, savings, credit card, personal loan, business banking, life, pension and investment products in the UK.

Moneyfactscompare.co.uk is the financial product price comparison site, launched as Moneyfacts.co.uk in 2000 and rebranded to Moneyfactscompare.co.uk in 2023, which helps consumers compare thousands of financial products, including credit cards, savings, mortgages and many more. Unlike other comparison sites, Moneyfactscompare.co.uk shows whole of market data regardless of commercial bias, showing consumers a true picture of the best products based on the criteria they select.

We hope you find this press release insightful. We would appreciate a link back to Moneyfactscompare.co.uk if you decide to source this information.

For more information about us please see our key facts.

Broadcast

Our broadcast suite enables our finance experts to appear in-vision for television, and we regularly comment live on national and regional radio.

To arrange an interview for radio or television, please contact our press department. We have an in-house broadcast room.

 

Notes to editors

Pioneering financial comparison technology for over 35 years.

Moneyfacts Group plc is the UK’s leading provider of retail financial product data. Used by virtually every bank and building society in the UK, and supplied to the Bank of England, Financial Conduct Authority, Financial Ombudsman Service, HM Treasury, Prudential Regulatory Authority and UK Finance.

Our expert research team monitors the thousands of mortgages, savings, credit card, personal loan, business banking, life, pension and investment products in the UK.

Moneyfactscompare.co.uk is the financial product price comparison site, launched as Moneyfacts.co.uk in 2000 and rebranded to Moneyfactscompare.co.uk in 2023, which helps consumers compare thousands of financial products, including credit cards, savings, mortgages and many more. Unlike other comparison sites, Moneyfactscompare.co.uk shows whole of market data regardless of commercial bias, showing consumers a true picture of the best products based on the criteria they select.

We hope you find this press release insightful. We would appreciate a link back to Moneyfactscompare.co.uk if you decide to source this information.

For more information about us please see our key facts.

Broadcast

Our broadcast suite enables our finance experts to appear in-vision for television, and we regularly comment live on national and regional radio.

To arrange an interview for radio or television, please contact our press department. We have an in-house broadcast room.

 

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James Hyde Press & PR Manager
Rachel Springall Press Officer / Finance Expert
Caitlyn Eastell Apprentice Press & PR Assistant