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Featured - ISA allowance
What is the 2024/25 ISA allowance?A new tax-year means a refreshed ISA allowance to allocate. Find out more about the 2024/25 ISA allowance...
Savings
ISAs
Mortgages
Buy to let
Specialist mortgages
Featured - Debt and your credit score
How debt impacts your credit scoreA healthy credit score has its benefits, so make sure you manage your debt correctly.
Loans
Featured - travel insurance
Travel insurance 2024Discover the best travel insurance policy for your next trip.
Home & vehicle
Health & travel
Featured - High interest current accounts
Find current accounts offering in-credit interest rates up to 5.00% AER.
Current accounts
Featured - Purchase Cards
Best purchase credit cardsExplore the best cards with a 0% introductory period.
Credit cards
Credit repair
Calculators & guides
Featured - The triple lock explained
Could the value of your state pension rise by more than inflation?
Retirement
Business savings
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Business insurance
How much can I give as a cash gift?
How much can I give as a cash gift?Will your loved one's gift be tax affected?
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First-time buyers who have been saving for a 10% house deposit will have seen the number of mortgage deals available to them fall by 40 overnight, with just 75 deals now available at a 90% loan-to-value (LTV).
As well as the number of 90% LTV deals falling, the number of deals available at a 95% LTV has also dropped by almost half, falling from 33 available yesterday to just 16 deals on the market today.
Nationwide Building Society’s decision to withdraw its 90% and 95% deals from the market will come as a blow for first-time buyers, who over the last few weeks will have seen an increasing number of lenders withdrawing their high LTV deals from the market, with popular providers such as Virgin Money and Accord Mortgages pulling 90% and 95% LTV deals.
Not only are first-time buyers seeing the number of mortgage options available to them on a 5% or 10% house deposit fall dramatically, but with savings rate being slashed at the same time, it is becoming increasingly harder for them to save for the 15% deposit needed for a deal at 85% LTV. For first-time buyers who are able to save for a 15% deposit, there are currently 341 deals available on an 85% LTV.
In addition to this, last November the Government’s popular Help to Buy ISA, which offered a 25% bonus for savers, was withdrawn from the market. This has left first-time buyers saving for a house deposit and wanting to get a Government bonus on their savings with only the option of a Lifetime ISA, for which there are just six deals available to savers, with the highest rate standing at 1.25% AER.
First-time buyers who have been able to save for a 10% or 5% deposit and who are unable to save further should consider speaking to a mortgage broker to discuss their options.
Eleanor Williams, finance expert at Moneyfactscompare.co.uk, said: “It may be disappointing for prospective borrowers to see more contraction again in the higher LTV mortgage market, but this arena has been significantly impacted by the Coronavirus pandemic, and these are unprecedented and uncertain times for borrowers and lenders alike. As well as operational difficulties and high levels of pent-up demand unleashing as the property market re-opened, there is also concern around the possibility of negative equity, as there is the worry that potentially property prices may drop in the months to come.
“If borrowers are looking to explore their purchase or remortgage options with only a small deposit or low level of equity, they would be wise to seek independent financial advice to go through their options, as what is available and the criteria and requirements of providers is a very fluid landscape at the moment.”
Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time. Links to third parties on this page are paid for by the third party. You can find out more about the individual products by visiting their site. Moneyfactscompare.co.uk will receive a small payment if you use their services after you click through to their site. All information is subject to change without notice. Please check all terms before making any decisions. This information is intended solely to provide guidance and is not financial advice. Moneyfacts will not be liable for any loss arising from your use or reliance on this information. If you are in any doubt, Moneyfacts recommends you obtain independent financial advice.
The Moneyfacts Pick of the Week showcases the best of the latest products or rate changes to hit the consumer finance market.
This week's selection includes a five-year bond from GB Bank and a two-year fixed rate mortgage from first direct.
Each week the Moneyfactscompare.co.uk content team round up the very best mortgage rates available in the UK. Compare and apply today.
Many of the lowest mortgage rates drop as the first sub-4% mortgage deal since April appears on the market.
The Moneyfacts Pick of the Week showcases the best of the latest products or rate changes to hit the consumer finance market.
This week's selection includes a five-year bond from GB Bank and a two-year fixed rate mortgage from first direct.
Each week the Moneyfactscompare.co.uk content team round up the very best mortgage rates available in the UK. Compare and apply today.
Many of the lowest mortgage rates drop as the first sub-4% mortgage deal since April appears on the market.
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Moneyfactscompare.co.uk will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by Moneyfactscompare.co.uk will always be from news@moneyfacts-news.co.uk. Be ScamSmart.
Moneyfactscompare.co.uk will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by Moneyfactscompare.co.uk will always be from news@moneyfacts-news.co.uk. Be ScamSmart.
Moneyfactscompare.co.uk will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by Moneyfactscompare.co.uk will always be from news@moneyfacts-news.co.uk. Be ScamSmart.
Moneyfactscompare.co.uk will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by Moneyfactscompare.co.uk will always be from news@moneyfacts-news.co.uk. Be ScamSmart.
Moneyfactscompare.co.uk will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by Moneyfactscompare.co.uk will always be from news@moneyfacts-news.co.uk. Be ScamSmart.