Access to higher LVT and LTI mortgages 'to expand'

Date:Friday 3rd July 2009
Author: Susanna Kavka

Access to mortgages at higher loan-to-value (LTV) and loan-to-income (LTI) ratios is to expand over the course of the next few months, the Council of Mortgage Lenders (CML) has said.

The organisation made its comments in the wake of the release by the Bank of England of its latest Credit Conditions Survey.

Among the findings of the research was a prediction that householders will be offered more credit secured on their homes in coming months.

However, the CML warned that not all lenders are in the same position.

It said: "Some of the increase in capacity is due to commitments made by some large lenders signing up to the asset protection scheme. But there has been a significant loss of capacity across other parts of the industry."

The CML concluded by stating that, while there are encouraging signs, a rapid return to "pre-credit crunch" lending conditions remains very unlikely.