Mortgages Uncovered

It is now official that there are no mortgage products which are 90% loan to value (LTV’s) that are available currently available through any intermediaries within the financial market place in the UK for any homeowner looking to remortgage or for second time buyer looking for mortgage product.

Recent research that has come in from the Home Buyer Systems has shown statistics to uncover that at least 30 mortgages which are 90% loan to value which are in fact available directly from the lender.

In the meantime, for people buying for the first time there is now only one mortgage product that is 90% LTV which is available via intermediaries. This though calculates to be more than £3K more expensive over the 2 years than the cheapest direct mortgage product available which equates to nearly £130 a month more.

Additionally, the Home Buyer Sourcing Index also found that direct to lender mortgage products are currently up to nearly £3k cheaper when the borrower takes their mortgage over two years – this is equivalent to around £120 a month – the broker will then distribute the equivalents for all the non first time buyer mortgage products.

Managing Director of Home Buyer Systems, Richard Angliss, said:

“Direct-to-lender products have consistently been cheaper for borrowers since the dual-pricing issue first came to light in July, making it harder for brokers to earn procuration fees. Now, the lack of 90 per cent deals via intermediaries is bound to cause further problems for brokers, packagers and networks.”