The latest analysis by Moneyfactscompare.co.uk reveals a handful of lenders have pulled higher loan-to-value deals in recent days.
Last week, a few lenders moved to pull some fixed deals at 90% and 95% loan-to-value (LTV). Hanley Economic Building Society withdrew its two-year fixed deal at 95% LTV, Principality Building Society withdrew selected two- and five-year fixed deals for first-time buyers at 95% LTV, Saffron Building Society pulled a five-year fixed deal at 90% LTV and Vernon Building Society withdrew a couple of five-year fixed deals at 90% and 95% LTV.
Since 23 May, the number of fixed mortgage deals at 90% LTV has fallen from 700 to 696. Over the same period, the number of fixed deals at 95% LTV fell from 329 to 326.
Moneyfacts finance expert Rachel Springall commented: “The fact that a few lenders are withdrawing some higher loan-to-value products may raise eyebrows, but we are not seeing a mass exit.
“However, should more deals be withdrawn at higher loan-to-values, it may come as disappointing news to those who have a limited deposit, such as first-time buyers. The deals that have disappeared last week may well resurface, perhaps when re-pricing activity picks up in the coming weeks.
She added: “Affordable housing is very much in short supply. There need to be significant changes to turn this around, but borrowers will have to wait and see what might be announced to address this issue after the General Election.”
