Black says: “High loan-to-value mortgages have been in relatively short supply over the last two years as lenders have been concentrating their efforts upon borrowers with greater equity or bigger deposits. This has resulted in many existing borrowers with high LTVs being effectively locked into their existing lender.
“Those in this position may find it worthwhile checking out whether their lender is offering any existing borrower only deals. In many cases, these are extremely competitive relative to generally available high LTV mortgages.
“Excluding lenders’ existing borrower only mortgages, there are only 37 two-year fixed rate mortgages available to homemovers requiring an LTV of 90 per cent or greater. First-time buyers have a choice of 54 deals, but only 14 are distributed through intermediaries.
“The number of high LTV mortgages is slowly increasing but the fact that many borrowers are either unable to remortgage, or have little incentive to do so, suggests it is becoming increasingly relevant to take account of whether an intended lender has a competitive SVR.
“Abbey for Intermediaries’ new two- year fixed mortgage is charged at 6.19 per cent and is restricted to movers or first time buyers. It includes a free valuation with £250 cashback towards legal fees. The average rate for similar products elsewhere is 6.14 per cent, or 6.21% for intermediary products, with a £664 or £853 fee.
“Abbey’s rate is not aggressively priced but does have the benefit of its homebuyer incentives. The picks elsewhere are Chorley Building Society at 4.99% per cent with a 0.5 per cent fee, or through intermediaries Skipton at 5.38 per cent with a £995 fee. Those seeking mortgages for properties in Northern Ireland may want to check out the offerings from Northern Bank and Ulster Bank.”