90% Loan to Value, (LTV) Mortgages

The credit crunch is over! Well… maybe not, however it seems the Banks are getting back their appetite for 90% LTV mortgages. Mortgages at 90 per cent loan to value have reappeared on the mortgage market in the last week. HSBC First Direct, their online arm have launched a 90 per cent loan to value tracker mortgage.

The lifetime tracker loan follows base rate plus 1.69%, and attracts an arrangement fee of £399. We think that its a winner, especially with such a low arrangement fee.

Richard Morea of London and Country, reportedly commented: “This is the best deal for some time and it looks like it is going to be very popular. It was launched on Wednesday (before the base rate reduction) so I’m assuming that it will actually go on sale. The market has been crying out for a reasonably priced tracker for some time – this is going to be snapped up.”

We note that there are some other banks offering loan to value mortgages of 90% however not many have sub 6% interest rates and often incur arrangement fees of closer to £1,000.

Have you found a better 90% LTV mortgage? Please let us know below.