Maximum LTVs reduced by many lenders
Published On 7 March 2008
The credit crunch and the Northern Rock crisis have had a dramatic impact on the UK's mortgage market.Moneyfacts has warned that a reduction to maximum loan to values (LTV) is one of the most notable differences made to borrowers.
Julia Harris, mortgage analyst at the independent financial information provider, observed that over the past year, more than a third of lenders had scaled down their maximum LTVs.
"A year ago mortgages at 95 per cent LTV were the most competitive [but now] lenders are taking a much more cautious attitude to risk; now you are most likely to find better deals with a larger deposit, say at 75 per cent LTV," she commented.
"In reducing LTVs, mortgage lenders are making first-time buyers look at getting a mortgage in a different light. Before, a prospective first-time buyer would be mainly concerned with how much money they could borrow on their income."
In addition, Ms Harris noted that most people will find it difficult to raise a deposit fro their fist home without help from their parents.
