Mortgage options for many first time buyers have narrowed after a flurry of lenders withdrew low-deposit home loan deals from the market.
Virgin Money, Clydesdale Bank, Accord Mortgages, Ipswich Building Society, Melton Building Society and Furness Building Society this week temporarily pulled all products with a 90 per cent or higher LTV, with most citing a higher than expected demand for these loans.
Aaron Strutt of Trinity Financial told the Financial Times: “The issue is that when a small number of lenders offer low deposit mortgages they get high levels of demand. And they don’t want to be offering too many high-risk products as it affects the spread of risk across the book.”
Mr Strutt added brokers were logging on early each day to secure their clients’ loans since the bank’s daily quota was quickly filled after opening.