21
Sep
Loan-to-value mortgage deals 'will increase'
The UK is likely to see cuts across loan-to-value mortgages and
later, across all deals, one property expert has suggested.
Ben Wilkie, editor at What Mortgage, said that increased
competition will help the property market to expand and pave the
way for more favourable rates on high loan-to-value mortgages in
the future.
His comments follow Woolwich's announcement earlier this week that
it will introduce a one-year tracker mortgage at 1.98 per cent made
up of the Barclays base rate plus 1.48 per cent, with a
loan-to-value of 60 per cent.
"There has been research saying that for first-time buyers, in the
last three or fourth months, every month they have to come up with
three per cent less deposit for their first home," stated Mr
Wilkie.
This news comes after HSBC recently reported that since it
introduced a mortgage with a rate of 1.99 per cent on September
1st, call volumes have increased by 78 per cent compared with July
and August.
