Lenders have told the Bank of England that they expect to release higher LTV deals over the next three months.
The Bank regularly polls lenders about lending conditions over the past three months and the next three months and compiles the results quarterly as part of its Credit Conditions Survey.
The latest survey for Q1 shows that lenders say credit availability has increased for borrowers with high LTVs, though say availability of lower LTV deals has remained stable.
A net balance of lenders reported that maximum LTV ratios had increased for the second consecutive quarter, and lenders said they expected a further small increase in maximum LTV ratios in Q2.
Maximum loan-to-income multiples were said to have been broadly stable between January and March and lenders do not see this changing over the next three months.
Lenders also reported that arrears rates had fallen unexpectedly in Q1, though expect this level to remain flat until June.
Demand for purchase mortgages is forecast to increase over the next three months but lenders have told the Bank that supply of mortgages will remain unchanged for at least the next three months, as they don’t expect the housing market to improve significantly in the short-term.