The fact that lenders are beginning to offer more mortgages at higher loan-to-values (LTVs) is “good news” for borrowers, it has been claimed.
It has now become “less risky” to lend to people with lower deposits, according to Peter O’Donovan, head of mortgages at Bestinvest.
However, he noted that rates on some low-LTV deals remain high, something that could lead to people needing debt help with repayments in the future.
Commenting on some high-LTV offers that have been unveiled, Mr O’Donovan remarked: “It is excellent that they are starting to drift back up to 90 per cent because that is what has been holding up the market.”
In addition, he stated that the declines seen in house prices recently – which has left some owners facing the threat of negative equity – is coming to an end.
Around 28,000 mortgages were approved in February, the latest figures from the British Bankers’ Association have shown.
By Jamie Price