9
Apr
Return of 90 per cent mortgages hailed
The decision of HSBC to announce it is launching new 90 per cent
loan-to-value (LTV) mortgage products has been hailed by price
comparison website moneysupermarket.com.
Head of mortgages at the site Louise Cuming said the move is "great
news for first-time buyers trying to get on to the housing ladder
and existing borrowers who don't have much equity in their
home".
She added that she hoped HSBC's decision to offer such deals will
encourage other lenders to increase the supply of mortgages of this
kind.
The reappearance of higher LTVs such as Abbey's new 85 per cent
four-year fixed deal is a good sign for the market, head of
mortgages at financial advisory firm Bestinvest Peter O'Donovan
said this week.
Stating that it is "excellent" to see rates "drift back up" towards
90 per cent, he commented that the absence of such deals has been
"holding up" the property market.
