Mortgage lenders expect to see a reduction in appetite for high-LTV loans over the next three months, according to figures from the Bank of England.
The Bank’s latest Credit Conditions Survey says 7.1 per cent of lenders will be less willing to lend to borrowers with LTVs of more than 80 per cent over the next quarter.
Meanwhile 11.1 per cent of lenders report the availablity of credit to households of less than 75 per cent LTV has reduced.
The Bank says 9.5 per cent of lenders thought secured lending fees would rise over the next quarter.
Lenders were also bullish about housing demand over the next quarter.
Nineteen per cent of lenders said demand for house purchase secured lending would improve over the period.
More than 17 per cent of lenders said they expected an increase in prime business, while 9 per cent expected an increase in buy-to-let.