After mortgages for first-time buyers all but disappeared during the early months of the pandemic last year, 90% loan to value (LTV) mortgages are making a comeback. There are reported to be over 190 products currently available.
The Pros
This means that the market for buyers with lower deposits is opening back up again, which comes as particularly good news for first-time buyers, allowing them to take a step onto the mortgage ladder, possibly after years of saving up for a deposit.
The Cons
However, celebrations are muted, as many of the 90% deals are expensive, both in terms of interest rates and fees. There is also more of a risk of having little or no equity if property prices were to fall.
Taking advice is key.
Your home may be repossessed if you do not keep up repayments on your mortgage
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(Your home may be repossessed if you do not keep up repayments on your mortgage)
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