Average 90% loan to value mortgage falls below 6%

by Aaron Strutt

May 13 2011

The average rate for a 90% LTV mortgage has fallen below 6% for the first time since March 2008, according to research from Moneyfacts.co.uk.

The typically rate for a two-year fix at 90% loan to value is currently 5.98%, 0.40% lower than a year ago. Over the last year the number of deals available to borrowers with a 10% deposit increased by 41% to 229.

Aaron Strutt, a broker at Trinity Financial, says: “More of the traditional lenders are coming back in to 90% loan to value market. Northern Rock offers one of the most competitive two-year fixes at 5.65% and it does not have an arrangement fee. Abbey for Intermediaries has also returned to the market and they have a two-year fix at 5.99% and it has a £99 arrangement fee.”

May 13, 2011