Over the last few weeks, we have seen the few remaining lenders offering 90% mortgages withdraw from the market.
Where have all the low deposit mortgages gone?
Most lenders (as of week commencing 16th June 2020) have pulled their 90% LTV deals temporarily because the number of applications for these deals has been so great that they literally cannot cope with the business.
Where a lot of the lenders still have reduced staff capacity, the last thing they’ll want is to be inundated with applications and not be able to process them in a timely manner – no good for anyone.
In addition to this, with the current uncertain economic climate, many lenders appear to be much more cautious and have withdrawn 90% LTV deals until there is more economic certainty.
The good news is that there are some 90% LTV mortgage deals available, albeit from a limited number of lenders. There are conditions with them too. Some lenders will only offer them to First Time Buyers and others are restricting the income multiples.
You’ll need to be quick too. I have seen allocation of funds running out within a few hours of being released as well and having to retry to get a mortgage agreed on a daily basis.
Hopefully as the days and weeks continue, we will see more of the mainstream lenders starting to come back into the 90% market.