Acorn Mortgages hopes that other lenders will follow the lead of HSBC, which recently introduced a 90% mortgage product at the lowest interest rate seen in years.
Mortgage adviser Karen Scott said that the property market desperately needed stimulation as it was in danger of stagnation.
‘We have not seen 90% mortgage rates this low since we started doing our monthly bulletin almost three years ago,’ she said.
And she added that, in conjunction with the recent States budget announcement of an increase in the threshold on stamp duty to £450,000 for first-time buyers, the new mortgages could be a boost to the flagging market.
She said that conditions remained ‘challenging’ and products such as that launched by HSBC might help stimulate demand.
