Woolwich and Bovis launch 90% mortgage

Barclays’ mortgage arm Woolwich has launched a new 90% loan to value market-leading mortgage to help first-time buyers who are struggling to save large deposits. However, it is only available to people who purchase their house from Bovis Homes.

The mortgage is fixed at for two years at 4.99% for loans up to 90% LTV. After two years the mortgage then reverts to a lifetime tracker set at the Bank of England base rate plus 2.49%. Today, with the Bank of England base rate currently at an all time low of 0.5% this equates to 2.99%. The arrangement fee for the loan is £999.

David Ritchie, chief executive of Bovis Homes, said: ‘In the current market, the ability of purchasers, especially first-time buyers, to access high loan to value mortgage finance has been severely curtailed’.

Ritchie claims the new mortgage deal will help first-time buyers who are struggling to save the higher deposits required by the mortgage market today get onto the property ladder.

Andy Gray, head of mortgages for Barclays said: ‘We are now starting to see more competition and consumer confidence return to the market and we believe this (mortgage) gives the right level of rates with the security of a fixed rate deal for the first two years, ensuring that those with limited equity have the security of knowing what their payments are in the early years’.