Residential  

Coventry latest to return to 95% LTV market

Coventry latest to return to 95% LTV market
 Credit: Chris Ratcliffe/Bloomberg

Coventry for intermediaries is re-entering the 95 per cent LTV mortgage market tomorrow.

The building society is launching the deals tomorrow (March 30), with product details to be announced in the morning.

Kevin Purvey, director of mortgage distribution at Coventry Building Society, said: “Helping more first time buyers get on the property ladder is a key focus for us and we recognise that one of the biggest hurdles facing many of them is the size of deposit required by lenders.

“We continued to support the market last year by lending at 90 per cent LTV and our enhancement to 95 per cent this week will provide further solutions for would be buyers.

“And importantly, our intermediary partners can be confident in our ability to deliver consistent levels of service across our telephony and underwriting teams.”

The building society is one of several lenders to return to the 95 per cent LTV market this month.

Skipton Building Society, for example, launched 95 per cent lending for first-time buyers last week (March 22), followed by specialist lender Aldermore (on March 25) for a limited period.

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.

chloe.cheung@ft.com

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