Latest data shows an improving picture for the mortgage market

25 January 2010 | By Natalie Thomas

Mortgage deals with LTVs of above 75% became more widely available between October and December, lenders have told the Bank of England.

The Bank’s Trends in Lending report draws on its own data from the UK’s major lenders to paint an up-to-date picture of the mortgage market.

Santander, Barclays, HSBC, Lloyds Banking Group, Nationwide and Royal Bank of Scotland all contributed to the data.

The latest report shows that mortgage availability in Q4 improv-ed, particularly for borrowers with an LTV above 75%.

There was more positive news for borrowers with a smaller deposit, as a net balance of lenders reported an increase in their maximum LTVs for the first time in over two years.

The report says: “Some major UK lenders confirmed that they had introduced some new mortgage products in rec-ent months at slightly higher LTV ratios than previously, partly reflecting the improved prospects for house prices and lower than expected unemployment.”

The report also cites data from Moneyfacts showing the number of products available at LTVs above 75% as signifying a growing trend for improved LTVs.

Lenders predict that the increase in mortgage availability is set to continue, though some remain anxious about economic recovery and a potential increase in arrears.

They also predict that spreads will narrow over the next three months, as well as fee reductions.

Last week Accord Mort-gages launched a range of mortgage products, offer-ing 80% and 85% LTVs. Pro-ducts include a two-year details of uk mortgage dealsfixed rate at 5.79% up to 85% LTV and a 5.29% fixed rate at 85% LTV and £1,995 fee.

On the commercial front, Crystal Mortgages has launched a 100% commercial mortgage product for the medical sector.

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