5 Feb

Borrowers 'need to think about high LTV mortgages'

Borrowers 'need to think about high LTV mortgages'

An increasing number of mortgage products with high a loan-to-value (LTV) are making it on to the market, indicating that financial institutions are easing their lending criteria, an expert has claimed.

Technical manager at mortgageforce Katie Tucker pointed out that the number of deals with an LTV of 85 or 90 per cent has increased dramatically, but that these loans often carry high rates.

She explained that borrowers could be in a better position if they saved another five per cent towards a deposit rather than entering into one of the high LTV offerings.

According to Ms Tucker, it could take a further six months before mortgages with low equity shares become competitive.

Research released in February by moneyfacts.co.uk revealed that there were 114 90 per cent LTV products available in January 2010, compared with 144 deals the following month.

The organisation noted that this is the highest number of 90 per cent LTV mortgages on the market since January 2009.ADNFCR-1222-ID-19600748-ADNFCR

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