Lenders boost higher LTV deals
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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 and 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 was said to have improved, particularly for borrowers with an LTV above 75%.
And 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.
Some of the lenders told the Bank that they had introduced new deals at slightly higher LTVs, in part reflecting better prospects for house price growth and falls in unemployment.
Data from Moneyfacts showing that the number of products available at LTVs above 75% also backs up a trend for improved LTVs.
Lenders predict that the increase in mortgage availability is set to continue this year, though some remain anxious about economic recovery and a potential increase in arrears.
They are also predicting that spreads will narrow over the next three months, as well as a reduction in fees.
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