Lack of high LTVs 'hindering mortgage market'

Date:Wednesday 27th May 2009
Author: Susanna Kavka

A lack of high loan-to-value (LTV) mortgage products is hindering recovery of the market, it has been claimed.

According to Ray Boulger, senior technical manager at John Charcol, more lenders need to begin offering home loans with a higher LTV ratios in order to help the ailing mortgage market.

He said: "As far as the purchase buyer is concerned, there is no doubt that the greater availability of mortgages on high LTVs would be the biggest single factor to help the market."

Mr Boulger also said that that there has been a "marked change of mood" over the last few months, with more first-time buyers expressing an interest in purchasing homes.

However, such people are being held back because they do not have sufficient deposits.

The expert made his comments in the wake of figures produced by the Council of Mortgage Lenders, which suggested that total mortgage lending in April declined by nine per cent compared with the previous month.