N&P makes mortgages available with smaller deposits

Norwich and Peterborough N&P Building Society has increased the maximum loan-to-value LTV it offers, potentially boosting the hopes of first-time buyers.

The society has increased its LTV on a selection of fixed-rate mortgage products from 80 per cent to 85 per cent.

A number of variable rate deals are now also available with a 20 per cent, rather than 25 per cent deposit, N&P has announced.

Meanwhile, the lender's five year 6.59 per cent fixed-rate mortgage has also reduced to 5.89 per cent, and its five-year 6.69 per cent fix has come down to 5.99 per cent.

Richard Barker, N&P's product manager for mortgages, said: "We have witnessed a general trend of rising LTVs across the market over the last few months.

"The new higher LTVs will provide a welcome boost for many customers who have struggled to raise a sufficient deposit to purchase or re-mortgage in the current environment."

Earlier this week, Paul Holmes, chief executive of Firstrung, claimed that up to 40 per cent of potential buyers cannot access the cheapest mortgage rates as they do not have a large enough deposit.

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2010-06-25 14:22:07 © Moneyextra.com