Coventry for Intermediaries is likely to re-enter the 10% deposit mortgage market as many of its rival lenders temporarily withdraw some of their low deposit rates.
The biggest lenders to pull their 10% deposit rates include Virgin Money, Clydesdale Bank, Accord Mortgages and Yorkshire Building Society. HSBC for Intermediaries is still offering 10% deposit mortgages as well as Bank of Ireland Bespoke and Tipton Building Society.
Aaron Strutt, product director at Trinity Financial, says: “Over the last week a host of banks and building societies have withdrawn the rates popular with first-time buyers leaving a small selection of lenders providing low deposit options.
“As a limited number of lenders initially re-introduced their 10% deposit mortgages following the coronavirus restrictions, they have been under pressure to sustain the high level of applications they are receiving. They also have to balance their books, so they need larger deposit mortgages to satisfy their risk requirements to avoid being more exposed if house prices fall.”
Coventry Building Society is likely to start offering 10% deposit mortgages over the coming days, and other lenders are expected to follow suit over the coming weeks.
Some of the private banks provide low deposit mortgages for wealthier borrowers looking for larger properties although they have minimum income requirements.
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