Lenders plan to offer high LTV deals soon

BANK OF ENGLAND:  CREDIT SUPPLY TO REMAIN THE SAME
BANK OF ENGLAND: CREDIT SUPPLY TO REMAIN THE SAME

Lenders have told the Bank of England that they intend to launch higher LTV products in the next three months.

The Bank regularly polls lenders about lending conditions in the previous three months and the next three, then compiles the results quarterly as part of its Credit Conditions Survey.

The latest survey, for Q1 2010, saw a net balance of lenders report that their maximum LTV ratios had risen for the second consecutive quarter, and they expect to see a further small increase in Q2.

Maximum loan-to-income multiples remained broadly stable between January and March and lenders don’t see this situation changing in the next three months.

Lenders have also told the Bank that mortgage demand is likely to recover from the lows seen earlier this year.

But the Bank notes the availability of mortgages is not expected to increase in line with the rise in demand.

It says: “In the next three months the availability of secured credit in the market is expected to remain unchanged.