The supply of high loan-to-value (LTV) mortgages has diminished due to the tightening of criteria by lenders, it has been stated.
According to the Council of Mortgage Lenders, the fact that high LTV mortgages have become a lot less common is both a benefit and a drawback to property buyers.
Spokesperson for the CML Sue Anderson said that although it helps protect them from further price falls, buyers will have to save for longer before they can purchase a home.
“Because access to mortgage funding is limited, lenders have tightened their criteria and have narrowed down the lending options available,” she remarked.
Those who have been looking to switch their mortgage in order to improve their debt management may also suffer as they may be less likely to find a financially-sensible deal.
The number of outstanding mortgages in the UK stood at 11.69 million in the third quarter of 2008, according to CML figures.
By Tom Musk