The mortgage market has seen a gradual increase in the number of products offering higher loan-to-values (LTVs), providing some relief to borrowers with limited deposits.

Total number of mortgages split by loan-to-value

	Total number of residential mortgages	Total number of 90% LTV deals	Total number of 85% LTV deals
Feb 2011	2811	214	560
Aug 2010	2438	185	454
Feb 2010	1971	144	310
Source: Moneyfacts.co.uk 16.2.11

Average 2 Year Fixed Rate split by loan-to-value

	90% LTV	75% LTV	60% LTV
Feb 2011	6.09%	4.03%	3.86%
Aug 2010	6.15%	4.11%	4.02%
Feb 2010	6.48%	4.27%	4.29%
Source: Moneyfacts.co.uk 16.2.11

Louise Holmes, spokesperson for Moneyfacts.co.uk, commented: “Higher loan-to-value mortgages are making a steady return to the mortgage market. This will be welcome news to borrowers with small deposits, particularly first time buyers who have struggled to find products which meet their needs.”

“Lenders became risk averse during the height of the credit crunch by withdrawing their higher loan-to-value mortgage products. Over recent months some lenders have increased their rates and expanded their number of higher loan-to-value deals, giving indications that the market could be returning to a competitive, rather than risk-based state.”

www.moneyfacts.co.uk - The Money Search Engine

Moneyfacts.co.uk is the UK's leading independent provider of personal finance information. For the last 20 years, Moneyfacts' information has been the key driver behind many personal finance decisions, from the Treasury to the high street.

Comments

Shane
28 Feb 11, 19:19

LTV Mortgage

Hi, I am looking for a mortgage with a LTV of 47% and have been turned down by 2 high street banks because I operated through an EBT scheme for 3 years which means my "income" previously is too low to substantiate the payments. I have explained the scheme to the Bank, my personal bank who can see the funds coming in and yet they will not budge as the underwriters say they will not underwrite the loan of £125K on a property value of £265K. Why am I being prejudiced for being tax efficient - this is so frustrating when I am getting enough money to fund the repayment several times over. I have no CCJ, no bad credit rating, credit card paid in full each month. People earning less than me with higher LTVs are getting mortgages but I cannot - can you please explain this...

Steve F
10 Mar 11, 18:02

Sub prime anyone ?

Wow what short memories. People can't afford to buy houses because the prices are so high and they don't have the ability to raise the deposit required. The market requires churn for everyone to make their commissions. So let's make it easier for them to borrow money.

Can you say sub prime ?

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