Bank of Ireland latest to return to 95% LTV market

Bank of Ireland latest to return to 95% LTV market
Credit: Chris Ratcliffe/Bloomberg

Bank of Ireland UK is returning to the 95 per cent loan-to-value market with an intermediary-only product.

The bank is returning to the market today (March 18) with a product for first-time buyers, homemovers, employed and self-employed applicants.

The mortgage is a five-year fixed rate of 4.05 per cent with no product fee, and is available across the whole of the UK up to 4.49x loan-to-income.

A minimum and maximum loan size of £150,000 and £500,000 applies respectively, and it is not available for new-build properties.

George Higginson, UK mortgages director at Bank of Ireland, said: “The last year has seen unprecedented challenges in the market. Over this time we’ve consistently offered a full range of mortgages to help provide certainty for brokers and their end customers. 

“By offering a 95 per cent LTV mortgage product again, we’ll be able to help many first time buyers, second steppers as well as the self-employed who are often overlooked by other lenders.” 

The bank’s return comes after Accord Mortgages became the first lender to re-enter the 95 per cent LTV market yesterday (March 17) with a five-year fixed rate of 3.99 per cent for first-time buyers.

Data from Moneyfacts showed there were just five products available at 95 per cent LTV at the start of this month, compared to 391 at the start of March last year.

More lenders are expected to offer 95 per cent LTV mortgages from next month as the government’s mortgage guarantee scheme opens for new applications in April.

The scheme will enable first-time buyers and homeowners to secure a mortgage with a 5 per cent deposit on a property of up to £600,000, with the government offering lenders the guarantee they need to provide mortgages that cover the other 95 per cent.

According to chancellor Rishi Sunak, several of the country’s largest lenders including Lloyds, NatWest, Santander, Barclays and HSBC will be offering 95 per cent mortgages under the scheme.

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