Mortgage loan-values ‘on the rise again’

Mortgage loan-value (LTV) rates are rising again, but are not yet at the level they were at 18 months ago, it has been noted.

Editor at What Mortgage Magazine Ben Wilkie said that there has recently been an increase of deals at an 85 per cent LTV or higher, but noted that before the credit crunch first-time buyer deals were usually 95 per cent or higher.

“There are now a couple of 90 per cent loan-values and I think probably eventually we are going to get back to 90 per cent being a standard,” he added.

A growth in confidence in the market will be the stimulus that encourages more lenders to be bold with their homebuyer loan products, Mr Wilkie suggested, adding that having plenty of first-time buyers is vital to keep the housing market wheels turning.

September saw the bank of England record a total of 56,215 loans for house purchases, the highest figure for 18 months.

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