High LTV mortgage shortage ‘will continue’

The current shortage of high loan-to-value (LTV) mortgages available for first-time buyers (FTBs) will continue for some time, a spokesman for the Building Societies Association has suggested.

Paul Broadhead, head of mortgage policy at the organisation, said that FTBs are still interested in buying property, but the loans that they have traditionally relied upon to get them on to the ladder are not there right now.

“There is lots of interest there, but the very high LTV mortgages … still are not there and are probably still a way off,” he commented.

Meanwhile, FTBs who do not require high LTV mortgages because they have managed to save up large deposits or have families that can give them substantial financial assistance face favourable market conditions, Mr Broadhead remarked.

He pointed out that mortgages are at historic lows, while house prices are also significantly cheaper than they once were.

Bankruptcy advice seekers may be aware of Halifax’s assertion last month that housing is at its most affordable level since the start of 2003.

By Chris Trimble