Lenders increasingly charged high-LTV borrowers more in rates in Q2 compared to Q1, according to insurer AmTrust.
The insurer says first-time buyer borrowers at 95 per cent LTV have far less choice and pay increasingly more than those who are able to put down 25 per cent.
Homeowners with a 5 per cent deposit paid an average of £823 in monthly repayments in Q1, £341 more than the £482 paid each month by those with 75 per cent loans.
In the last quarterly AmTrust LTV Tracker the difference was £324 per month.
Product availability has also dropped for those seeking to buy at a house price of £250,000 with a 5 per cent deposit.
The insurer says in Q1 there were 62 two-year products of all types for this group, but there are now 59.
But there has been an increase in loans at 75 per cent LTV, rising from 157 to 548.
“Given that first-time buyers tend to be in the former bracket, it is they who are suffering the most as rates rise by more, monthly/annual mortgage payments increase whilst at the same time product availability continues to drop.”
Sourced From: Mortgage Strategy