Nobody can tell for sure, but most financial predictions are that it will be several years before the economy picks up to anywhere near that kind of state. Most predictions are for either no growth or very small growth, and the growth relates (indirectly) to how much risk banks are willing to take on lending people most or all of a mortgage.
It will be some years before the economy picks up sufficiently and house prices are rising quickly enough that banks begin to think that this is a good idea again.
But in the meantime it is quite possible that rules will be put into place to prevent this kind of thing so they might never return.
One of the reasons this kind of mortgage was given is that the lender was able to package the debt and sell it on the international investment market. So the lender was not that bothered whether or not it was actually repaid. It is quite likely that the UK will follow the example of the US, where Obama recently announced that high street banks would not be allowed to use customer money to trade on the investment markets. That means they would need make a profit on their loand and mortgages in the old fashioned way, so will need to be a lot more cautious about who they lend to.
There are a small number of mortgage lenders currently offering mortgages at 95% LTV for personal residential schemes, however these application generally need to be supported by a suitable guarantor and are quite restrictive.
It is hard to know how long it will be before we see the higher LTV for Buy To Let and more readily for personal mortgages. The first major factor which needs to occur is the general feeling that property prices have actually reached their floor.
Mortgage lenders are concerned that if they lend at high LTV’s they could have lots of customers in negative equity should property prices continue to fall. If these customers then in turn fell into difficulty with their mortgage payments the lenders are in an impossible situation. If they repossess the property they will be unable to sell it for what the debt is outstanding and if they don’t repossess they are not receiving their payments from the customer.
So until it can be said that property prices have hit their bottom price, remained there and look to be rising, we will most likely not see higher LTV mortgages available.
Disclaimer:
The answers above are for guidance only and should not be acted upon without you receiving professional mortgage advice relevant to your circumstances. To find an independent mortgage adviser please go to
I am not sure 95% mortgages will be available again in the near future. But if they are it will not be until we are seeing a climate where house prices are increasing sharply over a long period of time and when their is more available credit.
Monday morning.
Seriously, no-one can know that.
WelshLad | Feb 21, 2010 | Reply
Nobody can tell for sure, but most financial predictions are that it will be several years before the economy picks up to anywhere near that kind of state. Most predictions are for either no growth or very small growth, and the growth relates (indirectly) to how much risk banks are willing to take on lending people most or all of a mortgage.
Stuart B | Feb 24, 2010 | Reply
It will be some years before the economy picks up sufficiently and house prices are rising quickly enough that banks begin to think that this is a good idea again.
But in the meantime it is quite possible that rules will be put into place to prevent this kind of thing so they might never return.
One of the reasons this kind of mortgage was given is that the lender was able to package the debt and sell it on the international investment market. So the lender was not that bothered whether or not it was actually repaid. It is quite likely that the UK will follow the example of the US, where Obama recently announced that high street banks would not be allowed to use customer money to trade on the investment markets. That means they would need make a profit on their loand and mortgages in the old fashioned way, so will need to be a lot more cautious about who they lend to.
SimonC | Feb 24, 2010 | Reply
There are a small number of mortgage lenders currently offering mortgages at 95% LTV for personal residential schemes, however these application generally need to be supported by a suitable guarantor and are quite restrictive.
It is hard to know how long it will be before we see the higher LTV for Buy To Let and more readily for personal mortgages. The first major factor which needs to occur is the general feeling that property prices have actually reached their floor.
Mortgage lenders are concerned that if they lend at high LTV’s they could have lots of customers in negative equity should property prices continue to fall. If these customers then in turn fell into difficulty with their mortgage payments the lenders are in an impossible situation. If they repossess the property they will be unable to sell it for what the debt is outstanding and if they don’t repossess they are not receiving their payments from the customer.
So until it can be said that property prices have hit their bottom price, remained there and look to be rising, we will most likely not see higher LTV mortgages available.
Disclaimer:
The answers above are for guidance only and should not be acted upon without you receiving professional mortgage advice relevant to your circumstances. To find an independent mortgage adviser please go to
Unbiased Find a Mortgage Adviser | Feb 27, 2010 | Reply
I am not sure 95% mortgages will be available again in the near future. But if they are it will not be until we are seeing a climate where house prices are increasing sharply over a long period of time and when their is more available credit.
LoopeyLoz | Mar 3, 2010 | Reply