More lenders are offering 95% loan-to-value mortgages

Since the financial crisis in 2008 lenders have been reluctant to offer high loan-to-value mortgages which has resulted in many of us being unable to afford our dream homes or take our first step onto the property ladder.

Without the help of high loan-to-value mortgages some will have spent years saving for a deposit, are still living with parents, or are stuck in the rental cycle. The dream of owning our own homes seems somewhat in the distance.

But are times changing?
The number of mortgage providers that include a maximum 95 per cent loan-to-value product in their range now stands at 60*, up from 53 a year ago and 13 more than five years ago, according to Moneyfacts. This is great news for potential first-time buyers and home movers.

A decade ago a borrower with a five per cent deposit had just three products from three mortgage providers to choose from. Today, you have a choice of a massive 405 products, including 67 variable deals, from a huge total of 60 providers*.

More than four fifths of mortgages available at a maximum 95% loan-to-value are fixed rate mortgages, accounting for 338 products of the 405 available.

These deals enable you borrowers to have the certainty of knowing what your monthly repayment amount will be. This is perhaps of particular importance to those you who are taking their first steps onto the property ladder.

With the number of high loan-to-value options now available it’s important to seek professional advice. Your adviser will be able to find the right mortgage for you, or your loved one’s specific circumstances should they want to take that first step onto the property ladder, which can be invaluable.

If you, or someone you know, would like to take advantage of the high loan-to-value mortgages available, please contact your adviser today.

* Number of products correct as of 16/04/2019

UK life insurance is the cheapest in the world

In the UK we’re largely underprepared for the worst-case scenario. If the worst were to happen to you, without suitable protection, it could leave your family under a lot of financial pressure and despite life cover being the most popular type of protection the majority of us still aren’t covered!

According to Legal and General only 15 million adults have a life insurance policy which is just under a quarter of the UK population. This figure is quite scary, especially considering the price of life insurance in Britain is the cheapest in the world according to CIExpert.

Reducing Premiums
Surprisingly, premiums have actually reduced over time and it may be cheaper to cover yourself now than 10, and even 18 years ago.

For a £123,000 decreasing term plan on a 32-year-old non-smoking male and a 28-year-old smoking female in 2001 the cheapest premium available was £42.47 per month with Norwich Union, who are now Aviva. Today the standard Aviva plan would cost you £41.81. The reduction for a standard Zurich plan is far wider too – £58.21 per month down substantially to £39.93.

A November 2012 plan reflects a similar trend. A £92,000 decreasing term plan for a 24-year-old female non-smoker cost £26.67 pm with Zurich, which today would want £25.24 pm. L&G, which charged £34.58 pm, has reduced to £26.17 pm. But the price is always dependant on your individual circumstances.

Whether this downward trend is set to continue or not, now seems like the perfect time to protect you and your loved ones in case the worst were to happen.

If you would like to discuss your protection needs, or just explore your options, contact one of our advisers today.