Mortgage deal caution urged by

Date:Tuesday 13th October 2009
Author: Max Freedman

Consumers who do not have a significant deposit but are keen to secure a home should be cautious when entering the market, according to

Hannah-Mercedes Skenfield, mortgage spokesperson at the company, made her comments as the firm published figures indicating that more than a third of potential mortgage customers are looking for deals available either at or above 80 per cent loan to value (LTV).

According to the price comparison site, there are presently more than 2,200 mortgage deals on offer. However, only a quarter of those available have an LTV that is in excess of 80 per cent.

"For those looking to buy a home, but without a significant deposit, caution must be urged," Ms Skenfield stated, noting that some variable-rate mortgages that are currently available at a higher LTV are "a long way above" the current base rate of interest.

She concluded by explaining that should the Bank of England's Monetary Policy Committee elect to increase the base rate from its current level of 0.5 per cent, repayments have the potential to "skyrocket".