Competition among banks for high loan to value (LTV) mortgage business is back to levels seen in May 2019, when the Bank of England issued a warning over risky lending. The number of products available for borrowers with a 5% deposit has reached 405, its highest level since May’s peak of 413. This was also the same month as the Prudential Regulation Authority urged caution to the industry on low deposit lending. The PRA said it would be watching lenders “like a hawk” as it said mortgage price wars had caused lenders to “risk up in ways that are excessive or not properly controlled or capitalised”. The cost of high loan to value lending has also fallen. The average rates available on a 2 and 5-year fixed rate mortgage at 95% LTV stand at 3.22% and 3.52%, with respective drops of 0.19% and 0.26% when compared to February last year. On a monthly basis, the average rate for a 2-year fixed rate at 95% LTV has decreased from 3.25% in January and for a 5-year fixed, this has declined from 3.56%. A spokesperson for Moneyfacts, said: “As our data shows, the market has picked up since the intervention by the PRA last year. This seems to demonstrate that there continues to be competition among lenders in this ever-expanding section of the market.” For Mortgage Advice in King’s Lynn, pop into The Mortgage Bureau at 50 King Street, PE30 1ES or call 01553 770102. Your One Stop Mortgage Shop! https://local.google.com/place?id=992766762729208060&use=posts&lpsid=19280995805525444