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YBS relaunches 90% LTV mortgages

YBS relaunches 90% LTV mortgages
 Credit: Chris Ratcliffe/Bloomberg

Yorkshire Building Society has launched a range of 90 per cent LTV mortgages for first-time buyers, homemovers and remortgage customers.

The building society said it hoped its new range would give greater choice to borrowers with smaller deposits, in what it described as a “limited market”.

Products include a two-year fixed rate at 3.69 per cent, and a five-year fixed rate at 3.79 per cent, both carrying a £995 product fee for home purchases and remortgages.

House purchase mortgages come with a free standard valuation, while remortgage customers also benefit from paid legal fees.

Ben Merritt, senior mortgage manager at Yorkshire Building Society, said: “We know it’s been a really tough few months for borrowers with smaller deposits but hope returning 90 per cent LTV mortgages to our core range will provide a welcome boost to people wanting to get on to, or move up, the property ladder.

“We’ve consciously designed the new range to include something for homebuyers, movers and people remortgaging to make sure our options meet the varying needs of those borrowing more money against the value of their house.”

YBS’ launch comes after its intermediary arm, Accord Mortgages, relaunched 90 per cent LTV products on a “more consistent” basis last week (November 18) after a series of limited releases.

Mark Harris, chief executive of SPF Private Clients, said: “Yorkshire Building Society, and its stablemate Accord, should be applauded as they join the likes of Nationwide with a presence in the 90 per cent LTV space. 

“We would encourage the largest high-street lenders to revise their current stance and re-enter this underserved space. There is a lot of untapped demand from borrowers for high LTV products.

“Lack of availability and competition means that borrowers have seen rates rise. Twelve months ago, 90 per cent two-year fixes were available from less than 2 per cent but now the equivalent products cost well over 3 per cent, despite rock-bottom interest rates.”

Data from Moneyfacts showed the number of 90 per cent LTV products stood at 56 at the start of November, down by 93 per cent year-on-year.

chloe.cheung@ft.com

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