4
Nov
Lenders 'more confident' about housing market
The increase in the number of 85 per cent loan-to-value (LTV)
mortgages available indicates that lenders are becoming more
confident about the state of the housing market, one expert
says.
Ben Wilkie, editor of What Mortgage commented: "I think lenders
… don't think [the housing market] is going to fall down by
much more – if at all – and the competition is starting
to come back."
However, he said that while the rise in high LTV loans on offer is
good news, it is still well below the level of lending 18 months
ago.
Moneyfacts reported that the number of 85 per cent LTV mortgage
deals available in October had increased from 189 to 226 - the
highest number in more than a year.
Mr Wilkie also commented that it was encouraging to see some
lenders offering rates of 90 per cent LTV products. He predicted
that this will become a standard level of borrowing for first-time
buyers.
According to research from the Council of Mortgage Lenders, the
average LTV of a mortgage taken out by a first-time buyer was 75
per cent in August 2009, compared with 85 per cent a year
earlier.
