15-01-2008
Lenders impose constraints on LTV
News by Adfero for Simply Business - independent providers of business insurance, business finance, landlord insurance, buy-to-let mortgages & commercial mortgages.
Mortgage lenders are reducing maximum loan-to-value (LTV) levels, it has been claimed.
Data released by Moneyfacts.co.uk, a member of the Moneyfacts Group, has found that among lenders, there is a definite trend towards reducing LTV levels.
Indeed, over the course of December, a number of providers reduced their maximum permitted LTV, including Alliance & Leicester and Manchester Building Society.
Moreover, during the second half of last year, a number of lenders discontinued their range of 100 per cent mortgage products, including Cumberland Building Society and Yorkshire Building Society.
"Moneyfacts.co.uk has found that since the beginning of December, 11 mortgage lenders have reduced the maximum [LTV] they offer on some or all of their mortgage range," said David Knight, a mortgage analyst with Moneyfacts.co.uk.
"This is an understandable about turn from the lending strategies we have witnessed over the last five years or so, when lenders pushed LTVs to highs of 130 per cent."
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