Higher Loan To Value Products Boost Homeowner Loan Market March 10th, 2010
Following a year of particularly cautious lending from banks and building societies with regard to maximum loan to value ratios, the number of available home owner loan products which only require a relatively small deposit has increased once again during the month of February.
The news comes from new research conducted by Moneyfacts.co.uk, who have seen a significant increase in the number of loan products offering higher loan to value ratios throughout February and even into the first week of this month.
In the space of just the last week, there have been new loan products from seven different lenders which offer up to between 80 and 85 per cent loan to value and although in recent months, these higher loan to value products have been far more expensive than those requiring a large deposit, the interest rates charged on these new loan deals are also starting to become cheaper.
This move shows a growing level of confidence in the housing and home owner loan markets, as banks and building societies start to relax their lending criteria, whilst still maintaining a responsible attitude towards offering loans to individuals.
Although the majority of high loan to value products are aimed at first time buyers, it is now even possible to obtain a loan of 90 per cent loan to value for someone moving house, which was unheard of just a few months ago.
Darren Cook of Moneyfacts.co.uk said “There are a growing number of mortgage providers which are becoming a little more accommodating with their credit criteria and this bodes well for consumers who will benefit from a growing competitive mortgage market. It is pleasing to see that the average mortgage rate is falling at the same time as deposit requirements are getting smaller, but at levels that are still responsible.”















