Woolwich returns to 90% ltv lending

by Aaron Strutt

Oct 28 2011

Woolwich has made a return to the 90% loan to value mortgage market after an absence of approximately three-years. The bank has extended its mortgage range to include rates for borrowers with a 10% deposit, rather than the 15% deposit previously required.

There are a number of lenders offering mortgages to those with a 10% deposit, but the rates are not always competitive. The new Woolwich deals are likely to appeal to homebuyers, especially as they are reasonably priced and have low arrangement fees.

Aaron Strutt, a broker at Trinity Financial, says: “Woolwich has a three-year fixed rate at 4.99% and it does not have an arrangement fee. The five-year fix is more expensive at 5.49% and there is a £499 arrangement fee.

“Woolwich is one of the UK's largest mortgage lenders and they have taken their time to re-enter this market - but it is a positive sign that they are back.

“They are one of the most generous lenders for lending on new-build properties and the maximum loan to value continues to be 85%.”

Nottingham Building Society has one of the lowest two-year fixes at 5.19% and it has a £999 arrangement fee. It is available to borrowers with a 10% deposit and there is a free property valuation.

October 28 2011