Despite a more subdued period for the mortgage market, an increasing number of lenders have pulled higher loan-to-value deals recently, data from Moneyfacts has revealed.
The data found over the past week lenders pulled some fixed deals at 90 per cent and 95 per cent loan-to-value.
This included Hanley Building Society withdrawing its two-year fixed deal at 95 per cent LTV, and Principality Building Society withdrawing selected two- and five-year fixed deals for first time buyers at 95 per cent.
Additionally, Saffron Building Society pulled a five-year fixed deal at 90 per cent LTV and Vernon Building Society withdrew a couple of five-year fixed deals at 90 per cent and 95 per cent LTV.
Moneyfacts finance expert, Rachel Springall, said: “The fact that a few lenders are withdrawing some higher loan-to-value products may raise eyebrows, but we are not seeing a mass exit.
“However, should more deals be withdrawn at higher loan-to-values it may come as disappointing news to those who have a limited deposit, such as first-time buyers.
“The deals that have disappeared last week may well resurface, perhaps when re-pricing activity picks up in the coming weeks.”
Additionally, the data found since May 23, the number of fixed mortgage deals at 90 per cent LTV has fallen from 700 to 696.
Over the same period, the number of fixed deals at 95 per cent LTV fell from 329 to 326.
As a result of these findings, Springall said affordable housing is “very much in short supply”.
Consequently, she argued there needed to be "significant change" to turn this around, but acknowledged borrowers will have to "wait and see" what might be announced to address this issue after the general election.
“In the meantime, any borrower looking for a new deal would be wise to seek independent financial advice to find the best mortgage that suits their circumstances, such as one with a bundle of incentives providing the best overall value for money,” she added.
tom.dunstan@ft.com
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