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 |
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Moneyfacts Group
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