Only 2% of mortgages have high LTV

Date:Wednesday 23rd June 2010
Author: Susanna Kavka

Just two per cent of the mortgage products that were handed out by lenders during the first quarter had a high loan-to-value (LTV) ratio.

According to What Mortgage?, borrowers with little to put forward as a deposit are being squeezed out of the market by lenders being reluctant to give them a product.

Assessing the figures from the Financial Services Authority (FSA), the publication stated that less two per cent of the people who received a mortgage during the quarter had a product of 90 per cent LTV or more.

It further stated that the data from the FSA reveals that in the first three months of the year, lending to consumers with a combination of a low income and high LTV accounted for less than one per cent of the entire market.

This report follows the news form that the average cost of repaying a two-year fixed-rate mortgage has fallen to its lowest point in seven years.