Help to Buy trebles high LTV mortgages


The number of 95 per cent mortgages at the disposal of aspirant first-time buyers has trebled, thanks to the Help to Buy scheme.

According to the Genworth Mortgage Loan to Value Tracker, just 43 products were available to those with only a five per cent deposit before the government’s flagship housing policy launched in October. Now, that number has more than trebled to 132.

An additional 22 products have launched at 95 per cent loan-to-value (LTV) in 2014 alone, meaning it is the only such band within which product numbers have increased this year.

The range of such products has also surged by 20 per cent since December – while 75, 80, 85 and 90 per cent LTV mortgages have all decreased in popularity.

Genworth vice-president Simon Crone said the market was very different now in comparison to six months ago, when potential buyers were “stranded”.

“A tide of new products has brought confidence flooding back and has already had a visible impact on the number of loans approved.”

He added high-LTV lending was good for the economy and could be a “powerful tonic” to support the wider recovery.

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