Increase in availability of loan-to-value mortgages

Date:Monday 8th February 2010
Author: Susanna Kavka

The amount of loan-to-value (LTV) mortgages on the market has increased rapidly, according to one industry expert.

Katie Tucker, technical manager at mortgageforce, said that the number of mortgages that are on offer for prospective buyers looking for an 85 per cent to 90 per cent LTV has "soared" in recent times as more lenders are looking to get back into the market.

She estimated that it will be another six months at least before 90 per cent LTVs begin to have competitive rates, as there are currently so few on the market that banks can charge high interest rates.

At the present time, many rates are very off-putting, Ms Tucker added, so it may be best for consumers to wait instead and save another five per cent towards a deposit.

Her comments follow the news from moneyfacts.co.uk that during January the number of mortgages with a 90 per cent LTV increased by 26.3 per cent, bringing the amount available to the highest level since January 2009.