The return of 95% loan to value (LTV) mortgages has failed to make an impact with homebuyers, according to Trussle.

The online mortgage broker found that just 1% of its mortgage completions were from 95% mortgages last month.

This poor uptake is owed in part to the low number of deals available. While the number of lenders has increased rapidly, the number of actual deals remains well below 2019 rates.

In July, there were 372 deals on the market, compared with a peak of 949 in November 2019.

Strict lending criteria has played a major part in the low uptake.

While Trussle has seen a large number of enquiries around 95% mortgage deals, peaking at 26% of all new mortgage enquiries in March, few have been successful in their application.

High LTV mortgages are subject to stricter lending criteria, require higher credit scores and cannot benefit from gifted deposits. In addition, some property types like flats and new builds are ineligible for the deals.  As a result, successful 95% mortgage applications  accounted for the small percentage of all Trussle completions in July 2021.

Miles Robinson, head of mortgages at Trussle, commented: “The return of 95% mortgages earlier this year was greeted with much anticipation. With greater application scrutiny and soaring house prices, first time buyers were facing a challenging market and these high LTV deals are crucial to ensuring home ownership remains an accessible dream for all.

“There is clearly an appetite for high LTV mortgages, as we have seen significant demand for 90% LTV deals, however, after making a real comeback in March it is disappointing that 95% deals are failing to make the difference we hoped to see.”