25 Apr 2024

Specialist UK Mortgages...

Moneyfacts.co.uk comments on possible Mortgage LTV caps

Ahead of George Osborne’s Mansion House speech tonight, there is speculation that the Bank of England will be handed powers to restrict the maximum loan to value available to home buyers.

Darren Cook, spokesperson for Moneyfacts.co.uk commented:

“The mortgage market is still recovering from the financial crisis and sweeping changes may only serve to hinder the recovery.

“Time will tell if these powers will be used to dictate responsible lending, or used sparingly to take the heat out of the property market when prices escalate too rapidly.

“Restricting borrowing levels will impact first time buyers the hardest. Many of them are already struggling to raise deposits at the current criteria with savings rates at all time lows.

“First time buyers are the lifeblood of the property market and few are likely to be able to afford a 25% deposit without any assistance.

“Thankfully, the financial crisis has caused the demise of 100% plus mortgages and reduced the availability of others with small deposit requirements.

“The product mix currently available to customers clearly shows that lenders are treating this mortgage landscape with much more prudence and respect that the previous one”

Number of products available at various LTV tiers
	Jun-07	Jun-08	Jun-09	Today
Max 100% plus LTV	136	0	0	0
Max 100% LTV	216	14	10	8
Max 95% LTV	970	134	6	19
Max 90% LTV	763	475	77	174
Max 85% LTV	207	83	195	485
Max 80% LTV	179	147	127	296
Max 75% LTV	308	504	507	885
Max 60% LTV	23	25	285	439
Source: Moneyfacts.co.uk 16.6.10

Moneyfacts Group
Moneyfacts is the UK’s leading independent provider of personal financial information and our data is used and trusted throughout the financial industry.

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