Remortgagers enjoy best deals

Remortgagers are best placed to take advantage of the top deals on the market as more lenders withdraw 100 per cent mortgages this week.

Saffron pulled its 100 per cent loan-to-value (LTV) product, which means a 95 per cent mortgage is the highest loan customers can now take out.

Royal Bank of Scotland and Accord, meanwhile, announced they were shelving their 95 per cent LTV products leaving borrowers without deposits with a 90 per cent loan as their best option.

Mortgage broker, John Charcol, said there were still lenders offering 100 per cent and 95 per cent mortgages, but this week flagged up a product for remortgages of up to 75 per cent as being the market leader.

Katie Tucker, technical manager for the broker, said: "For remortgages of up to 75 per cent, Abbey has a market-leading 4.99 per cent two-year fix for a fee of £2,999 with free valuation and legals.

"For borrowing of up to 90 per cent, West Bromwich has a ten-year fix at 5.39 per cent for a fee of £999, including free valuation and legals on remortgages."

The mortgage market is readjusting, according to Ms Tucker, and the housing market will follow. However, she said there remained options available for new home-buyers and remortgagers looking for high LTV products.

"There are lenders still offering 100 per cent and 95 per cent mortgages, for now, and borrowers should seek advice from a whole-of-market mortgage broker very soon if they want one," she said.

John Charcol has highlighted Newcastle Building Society as one such lender. It has a 95 per cent fixed-rate mortgage at 5.25 per cent which comes with no higher lending charge for a £999 arrangement fee. It is exclusively available through the broker.