Mortgage brokers cannot offer 90% LTV deals for remortgages

Date:Tuesday 2nd December 2008
Author: Rachel Fletcher

There are no longer any 90 per cent loan-to-value (LTV) mortgage deals available for remortgagers or second-time buyers through mortgage brokers, it has been reported.

Research by the Home Buyer Systems uncovered the information, although there is one 90 per cent LTV deal that mortgage brokers can offer.

But the research also found that this deal would cost borrowers £130 a month more.

There are also more than 30 deals for 90 per cent LTV mortgages available if borrowers go directly to lenders.

Richard Angliss, managing director of Home Buyer Systems, predicted difficulty in the future for mortgage brokers and stated: "Direct-to-lender products have consistently been cheaper for borrowers since the dual-pricing issue first came to light in July, making it harder for brokers to earn procuration fees."

Home Buyer Systems has a 14-year history of working with mortgage brokers and also operates in the insurance sector.

One of its founders was an independent financial adviser who believed a mortgage broker system was necessary.