Average rates are rising and product numbers are dropping for 95% LTV first-time buyer borrowers, according to mortgage insurer, AmTrust.
This comes at a time when according to the latest UK Finance figures for August, first-time buyers are paying on average £225,110 for a property, meaning that average deposit levels for 75% LTV borrowers are well over £56k, and 95% LTV borrowers now require over £12k.
For those with a 25% deposit, average interest rates have continued to fall, according to the Bank of England, with two-year rates down to 1.56%, compared to an increase for 95% LTV borrowers up from 2.95% to 2.97%. The rate differential for AmTrust’s LTV Tracker edged up to 1.41% from 1.3% in Quarter 2.
This means that those with smaller deposits pay (on average) £1,011 per month/£12,132 each year – the first time the monthly amount has gone past £1k during the life of the Tracker – while those with 25% deposits pay on average £680 per month/£8,160 per year. This is a further increase on the Q1 and Q2 results, especially for 95% LTV borrowers who have seen costs rise by over £200 in six months.
AmTrust said the competitive nature of the market was ensuring first-time buyers with large deposits continued to get the pick of the lowest rates, however those with smaller deposits were now likely to have to pay more for their mortgages which, coupled, with the increase in average house prices, was resulting in a significant cost increase.
NEW BUILD IN FOCUS - NEW EPISODE OF THE MORTGAGE INSIDER PODCAST, OUT NOW
Figures from the National House-Building Council saw Q1 2025 register a 36% increase in new homes built across the UK compared with the same period last year, representing a striking development for the first-time buyer market. But with the higher cost of building, ongoing planning challenges and new and changing regulations, how sustainable is this growth? And what does it mean for brokers?
The role of the bridging market and technology usage in the industry
Content editor, Dan McGrath, sat down with chief operating officer at Black & White Bridging, Damien Druce, and head of development finance at Empire Global Finance, Pete Williams, to explore the role of the bridging sector, the role of AI across the industry and how the property market has fared in the Labour Government’s first year in office.
Does the North-South divide still exist in the UK housing market?
What do the most expensive parts of the country reveal about shifting demand? And why is the Manchester housing market now outperforming many southern counterparts?
In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance, to explore how regional trends are redefining the UK housing, mortgage and buy-to-let markets.
In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance, to explore how regional trends are redefining the UK housing, mortgage and buy-to-let markets.
The new episode of The Mortgage Insider podcast, out now
Regional housing markets now matter more than ever. While London and the Southeast still tend to dominate the headlines from a house price and affordability perspective, much of the growth in rental yields and buyer demand is coming from other parts of the UK.
In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance.
In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance.
© 2019 Perspective Publishing Privacy & Cookies
Recent Stories