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The Nottingham joins lenders returning to 90% LTV

The Nottingham joins lenders returning to 90% LTV
 Credit: Jason Alden/Bloomberg

The Nottingham has become one of the latest lenders to relaunch 90 per cent LTV mortgages.

The building society is raising its loan-to-value after returning to the 85 per cent LTV market this month.

A five-year fixed rate mortgage is available at 3.70 per cent without a fee, while a rate of 3.45 per cent is available with a £999 arrangement fee.

Nikki Warren-Dean, head of intermediary sales at The Nottingham, said: “We’ve been working very hard behind the scenes to be able to bring back 90 per cent LTV mortgages.

“Buying property is never easy, and that has undoubtedly become more challenging due to the Covid-19 pandemic. We were always looking to return to this space and to help people with smaller deposits, however it was important to do so in a measured and responsible way.”

The building society is one of the latest to return to the high LTV tier with HSBC, for example, reintroducing 90 per cent LTV mortgages last week. Other lenders such as Metro Bank have also cut rates on 90 per cent LTV products.

David Hollingworth, associate director, communications at L&C Mortgages, said: “The market at 90 per cent LTV has undergone a rapid transformation in recent months as the return of lenders has accelerated.

“Having been slim pickings for so long, borrowers are now starting to see a broader range of lender and product choice, ranging from mutual lenders like The Nottingham through to the big, high street banks.

“Hopefully, as more lenders continue to relaunch at 90 per cent LTV it should only help build momentum and give further confidence to others to return as well.”

The number of mortgages at 90 per cent LTV saw the largest monthly growth in availability of all tiers in January, according to Moneyfacts.

chloe.cheung@ft.com

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