Bovis looking to launch 95% LTV mortgage
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Bovis Homes Group says it is in discussions with lenders about the possibility of launching a 95% LTV mortgage.
In an interim management statement today, the house builder says it has seen an encouraging start to the year, but a lack of high LTV mortgages is still holding back the house building market.
It says the limited supply of homes for sale is being balanced by constrained demand caused by low availability of mortgage finance at high LTVs, making sale prices relatively stable.
Kevin Wilkins, group marketing director at Bovis Homes, says it is still gauging lender appetite for higher LTV loans.
He says: “I would love to say that we are planning to launch a 95% LTV deal in the near future, but we are still in the early stages and approaching the relevant lenders that might be interested.”
He says it is hard to get lenders to offer higher LTV products, especially for the new- build sector.
In June last year the house builder launched a 90% LTV deal with Woolwich, exclusively for those buying a Bovis home.
As part of the deal the developer provided mortgage indemnity protection in case borrowers defaulted on their payments.
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Readers' comments (2)
Anonymous | 11 May 2011 3:03 pm
Surely new build is the last area that lenders would want to start with 95% mortgages. New build properties are notoriously bad for losing value in the early years, and buyers would be put at unacceptable risk of falling into negative equity - it wouldn't be responsible lending.
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gerry roberts | 12 May 2011 11:21 am
Anonymous. Shut up, and be happy for any signs of positive news or go and sell some life asssurance somewhere
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