Mortgage lenders begin return to 90% LTV

Platform had temporarily withdrawn its 90 per cent LTV fee-free range available to new business on July 9 due to “unprecedented demand”.

Chris Sykes, mortgage consultant at Private Finance, commented: “Three lenders announcing their return in one day should spur on other lenders to do the same.

“We have seen issues in the past few weeks with the lenders offering 90 per cent mortgages being inundated with applications and not being able to cope with the level of enquiries so spreading the cases more is an encouraging sign signally a potential widespread return of 90 per cent mortgages.”

Accord Mortgages, for example, temporarily withdrew its 90 per cent LTV products a second time this month, as the lender said it experienced the busiest month in its history.

Mr Sykes added: “With Nationwide being one of the biggest lenders for first time buyers hopefully it encourages the likes of Santander and Barclays to return to this market in the near future too”.

Data from Moneyfacts shows there were 72 residential mortgages available at 90 per cent LTV on June 26, less than 10 per cent of what was available at the beginning of January (751 products).