Return of 90% LTV mortgages 'boosts' equity release prospects

Britannia and the Co-operative Bank have announced the re-introduction of 90 per cent loan to value (LTV) mortgages to the marketplace, which could signal a brighter future for the equity release sector.

If property market conditions improve and confidence among lenders and consumers increases, then the potential for homeowners to build up equity in their properties may likewise enter an upward curve.

Among the range of new 90 per cent LTV mortgages is a two-year fixed rate product, a five-year fixed rate alternative and a three-year tracker.

The two financial organisations have also launched a new online advice guide for first-time buyers, while tailored support and advice will also be on offer at Britannia branches.

Rod Bulmer, managing director of retail for the Co-operative Financial Services, said the new measures are designed "to ensure customers feel supported throughout the home buying journey".

The announcement from Britannia and the Co-operative Bank comes after HSBC launched an innovative mortgage product known as the Split Loan Mortgage, which enables customers to hold a section of their loan on a fixed-rate basis while the remainder tracks the Bank of England's base rate.

Ashall Glover Financial Services are equity release specialists