The Help to Buy mortgage guarantee scheme is boosting high loan-to-value lending

Chris Papadopoullos
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The Help to Buy mortgage guarantee scheme is helping people get up the property ladder (Source: Getty)

The government's Help to Buy mortgage guarantee scheme, which offers greater protection for lenders, is boosting high loan-to-value (LTV) lending, according to new figures released today.

The number of mortgage deals offering loans equal to 95 per cent of the value of a property climbed to 260 in November, the data from mortgage insurer Genworth and comparison site Moneyfacts reveal. It marks a rise of 84 per cent compared with the number of high loan-to-value mortgage deals available in November last year.

There are six times as many high LTV loans available than in September 2013, before the guarantee was introduced.

Read more: Help to Buy doubles high value mortgages for first-time buyers

“There is little doubt that the Help to Buy mortgage guarantee has played an important role in rejuvenating the high LTV market,” said Genworth vice president Simon Crone.

“However, beneath the surface, it remains a long way short of full health and there is a danger that what we are seeing is a temporary restoration of appetite from lenders thanks in no small measure to Government efforts.”

The help-to-buy guarantee scheme was part of a suite of policies launched to help people get on, and up, the property ladder.

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