Britannia and The Co-Operative Bank are to reintroduce 90% loan-to-value mortgages from Friday 30 April.
According to the banks, the deals are designed to give first-time buyers ‘a huge helping hand’ with getting on the property ladder. Advice and support tailored for first-time buyers will be available through Britannia branches.
The new range of home loans includes a two-year fixed-rate mortgage, a five-year fixed-rate mortgage and a three-year tracker mortgage, all of which are available to borrowers with a 10% deposit.
New 90% mortgages
The 90% mortgages on offer from The Co-op and Britannia are competitive, says Which? property and mortgages expert Cathy Neal.
The two-year fixed deal is priced at 5.49%, the five-year fixed-rate mortgage costs 6.09% and the three-year tracker deal comes with a rate of 4.49%. Product fees of £999 apply to all these loans, although the two-year fixed-rate mortgage and five-year fixed-rate deal are available with no fees, at steeper interest rates.
‘Right now, these are the cheapest deals in their class,’ said Ms Neal. ‘However, it is still the case that high loan-to-value mortgages cost substantially more than deals for people who can afford to put down larger deposits up front.’
Find the best mortgage for you
If you’re on the hunt for a new mortgage deal, why not compare deals using the Which? mortgage calculator? It’s one of the few tools on the web that allows you to look at the total cost of the mortgage deals you’re considering, taking fees and charges into account as well as the headline interest rate.
If you’re confused about which type of mortgage to go for, you might also want to read our Mortgage basics and Mortgage deals explained advice guides. These are particularly useful for first-time buyers in need of an introduction to mortgage borrowing, or for people who aren’t sure whether a tracker or fixed-rate deal will suit them best.
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