The market share of riskier mortgages has jumped to its highest level since the financial crisis ALAMYBanks are slashing rates on riskier mortgages in a battle for customers, despite a warning from the Bank of England that it is watching them “like a hawk” and could clamp down on the market. Rates on 95% mortgages have dropped to an average of 3.24% on two-year fixes, near the record low of 3.23%, according to the data provider Moneyfacts. The market share of riskier mortgages has also jumped to the highest proportion since the financial crisis. Figures from the Bank show that the share of mortgages at or above 90% loan-to-value in the third quarter of last year rose to 5.9% — the highest since the fourth quarter of 2008. Although the increase of mortgages with small deposits has helped first-time buyers, economists…

Source: The Times January 05, 2020 00:03 UTC