High loan-to-value rates 'needed to improve market'

Date:Friday 13th November 2009
Author: Max Freedman

More mortgages with a higher loan-to-value ratio would benefit good borrowers looking to get on the property ladder, according to FirstRungNow.com.

Helen Adams, managing director at the website, believes that while more caution is needed on who large loans are given out to, those with a good credit rating require extra help with making their first purchase.

Ms Adams said that there are signs that the market is beginning to pick up, but for real improvement to be achieved, first-time buyers need a way of getting their own property, especially for those who cannot rely on parental loans to secure their deposit.

She said if would-be buyers can afford it, now is a good time to buy as "you are investing in your long-term future, rather than your landlord's pension".

Her comments follow the release of statistics by the Council of Mortgage Lenders which found that there were 50,600 mortgages in September this year, an increase of two per cent on the previous month and 43 per cent up on 12 months earlier.