More mortgages available for borrowers with 40 per cent equity, finds report

A loan-to-value (LTV) of 60 per cent is the ideal figure for people searching for a new mortgage, a new report has claimed.

Research by fool.co.uk has found that those who only need to borrow less than 60 per cent have the largest variety of homeowner loans to choose from, as there are up to 4,588 products on the market.

Those who have 25 per cent of the value of their property available for equity release can pick from 3,360 mortgage deals.

However, there are only 74 offers open to those who need to borrow more than 95 per cent of the asking price.

Head of personal finance David Kuo said: “If proof was ever needed that banks like to lend money to people who need it least, then this is it.”

HSBC recently announced a new rate of 5.97 per cent on its two, three and five-year fixed deals – with a maximum LTV of 90 per cent.

By Jamie Price