While a growing number of lenders are offering 95% loan-to-value (LTV) mortgages, pricing has hovered around the 4% mark.
Mark Harris, chief executive of SPF Private Clients, said: “[This] is a classic case of the ‘haves and have nots’, as pricing on lower loan-to-value mortgages continues to edge downwards.”
Harris noted that the housing market continued to be buoyant in February, with annual growth picking up.
Leeds adds two 95% LTV products
Data collected by the Office for National Statistics (ONS) shows that UK average house prices increased by 8.6% in the year to February 2021.
This increase represents the highest annual growth rate the UK has seen since October 2014.
Harris said: “The launch of the mortgage guarantee scheme backed by the government will provide a further boost for the market, enabling those with modest deposits to get on the housing ladder sooner rather than later.”