The Telegraph reported this weekend on the recent launch of some new market leading deals available up to 90% Loan-to-Value. The lowest rates may not be cost effective for all borrowers, with higher rates often working out cheaper once set up costs are factored in. Brokers pointed out however that these new deals demonstrate that those looking to remortgage, even with limited equity, could still make significant savings by changing their deal.
The Mail on Sunday also looked at higher LTV deals, revealing that several high street lenders are offering competitive deals to those with just a 5% deposit. Securing a deal can still be very difficult however, so First Time Buyers are advised to take steps such as ensuring they are on the electoral roll, and cutting down on spending in order to improve their chances of passing the affordability checks.
Also on the subject of lending potential, the Sunday Telegraph examined findings from the UCL Energy Institute, which suggest that lenders are unfairly penalising borrowers with newly-built energy efficient homes, by applying standard fuel costs in their affordability calculations. They estimate that if the correct calculations are applied, banks could lend borrowers thousands more.
Elsewhere, the Times looked at the return of interest only mortgages, albeit in a more muted form. Several lenders have relaxed their criteria, but in many cases only part of a mortgage can be interest only, with at least 25% required as Capital and Interest (or Repayment).