"There is clearly an appetite for high LTV mortgages, as we have seen significant demand for 90% LTV deals"
There are currently 49 lenders offering 95% LTV mortgages and the number of lenders has steadily been increasing since March this year. However, while the number of lenders has increased rapidly, the number of actual deals remains well below 2019 rates. In July, there were 372 deals on the market, compared with a peak of 949 in November 2019.
While Trussle has seen a large number of enquiries around 95% mortgage deals, peaking at 26% of all new mortgage enquiries in March, few have been successful in their application. As a result, successful 95% mortgage applications accounted for just 1% of all Trussle completions in July 2021.
However, while 95% mortgages are struggling to make an impact on the market, other high LTV mortgage brackets are seeing significant demand from consumers. 90% mortgages in particular have been a popular choice for those needing higher LTV products, accounting for 10% of Trussle completions in June, the highest level since August 2020.
Miles Robinson, head of mortgages at Trussle, commented: “The return of 95% mortgages earlier this year was greeted with much anticipation. With greater application scrutiny and soaring house prices, first-time buyers were facing a challenging market and these high LTV deals are crucial to ensuring home ownership remains an accessible dream for all. There is clearly an appetite for high LTV mortgages, as we have seen significant demand for 90% LTV deals, however, after making a real comeback in March it is disappointing that 95% deals are failing to make the difference we hoped to see.”
