Low-deposit mortgage sales fell one-third last year

Created by: Shekhina Tuahene

January 27, 2021

Mortgage sales within the 90-95% LTV Value (LTV) segment fell 35% from January to September last year compared to 84,419 in 2019.

In 9 months, there were 54,5 people.27 mortgages sold to borrowers (home buyers with 5-10% deposits) who require an LTV amount of 90-95%.

According to data analysis by Quilter, sales in 2020 were down 22% compared to an average of 70,788 sales at 90-95% LTV in the same month of 2017, 2018 and 2019.

Last year, many lenders restricted mortgages to 85% LTV or less As a result, merchandise availability was not very low, but only 91,323 mortgages were issued to borrowers who needed an 85-90% LTV loan. this is. .. ..was In 2019, 124,052 mortgages sold in this segment fell by 26%.

It also reduced an average of 118,918 mortgages by 23% with 85-90% LTV sold between 2017 and 2019.

For all mortgages with LTV 85-95%, last year’s sales were 145,850, down from 208,471 in 2019.

Gemma Harle, Managing Director of Quilter Financial Planning, said: “These numbers show how difficult 2020 was for the first-time buyer market, which usually needs higher loans to value transactions.

“Since the introduction of Stamp Duty Holidays, many mortgage brokers will tell you that they have never been busy.

“But the holidays do almost nothing at first– –Buyers who paid little or no stamp duty anyway, but had the time to pull the rug out of the bottom when the lender left the high LTV market, needed a larger deposit to set foot on the residential ladder. Means.

“”TThe next few months will be some for the first time, as lower house prices are likely to make them more, as generous government support schemes to keep people employment and stamp duty relief reduced. Affordable price that may be in the hands of the buyer.

Low-deposit mortgage sales fell one-third last year

Source link Low-deposit mortgage sales fell one-third last year

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