The number of the 95% mortgages soars


There’s good news for anyone wanting a 95% mortgage since the number available has now soared to its highest since the financial crisis began in 2008.

The number of mortgages requiring a 5% deposit as now reached 260 – that’s up from 141 95% mortgages that were available last year. The total was boosted by 68 products that came onto the market in the last three months.

The figures come from mortgage insurer Genworth who say this represents an 84% increase.

One reason for the rapid growth has been the response from lenders to help those with a 5% deposit to buy a property under the Help to Buy scheme which was introduced by the government.

Genworth says there are now six times as many mortgages available for the Help to Buy scheme as there were in September 2013, when the second phase was launched.

Growth in 95% mortgages available

Alongside the growth in 95% mortgages available, the rate being offered on a two-year fixed deal has also improved.

House buyers will find that the interest rate has fallen from 5.27% to 4.12% over the past 12 months.

However, there are many deals that are cheaper than this including one from Chelsea Building Society which is currently offering a two-year fixed deal at 3.64% which also has a fee of £1,675.

The HSBC is offering a two-year deal at 3.69% without a fee.

One mortgage broker told a national newspaper that house buyers with small deposits should hold on until they can save up for a 10% deposit since the mortgage rates will be much lower.

As an example, there’s a two-year fixed deal for customers with a 10% deposit with Yorkshire Building Society at 2.18% with a £1,475 fee.

However, Genworth is also highlighting that all sectors of the UK’s mortgage market has been undergoing growth, some sectors have fallen.

For instance, the number of 75% mortgages dropped between August and November by 38.

Good news from one the UK’s leading bridging finance lenders

Meanwhile, one of the UK’s leading bridging finance firms has announced an excellent end to 2015 with £330 million being loaned.

Now Amicus says that 2016 looks set to be a record setting year with lending set to break the £400 million barrier.

The firm’s managing director, Keith Aldridge, said: “Our story this year is one of growth, recruitment, acquisition and record performance.

“That’s part of our success and we are establishing initiatives that improves the quality of service.”

He also predicted that the UK’s short-term lending sector will see greater success in 2016.