Higher LTV mortgages 'to become available'

Date:Thursday 6th August 2009
Author: Susanna Kavka

More mortgages products with high loan-to-value (LTV) ratios are to become available to consumers in the UK, according to the technical manager for the national broker Mortgageforce.

Commenting on the issue, Katie Tucker said that she expects to see an increasing number of 85 per cent to 95 per cent deals available to homeowners in the near future.

According to the industry practitioner, half of the purchase transactions processed by Mortgageforce in June were for mortgages of 85 per cent to 90 per cent LTV.

Ms Tucker also claimed that availability of higher LTV mortgages is supporting stable house prices.

She said: "We all know that more 90 per cent mortgages means more buyers can get on the ladder, but it works both ways. Property values stabilising means lenders can offer higher LTVs without as much risk."

Figures released recently by the Bank of England revealed that mortgage approvals in June totalled 47,584. This was a rise on the 44,169 recorded in May.