15 Jan

Lenders cutting loan to value rates

Lenders cutting loan to value rates

Mortgage lenders in the UK have been reducing the loan to value (LTV) rates that they offer their customers, according to recent research.

Figures compiled recently by Moneyfacts.co.uk show that the amounts that mortgage providers are willing to lend to consumers against the value of a particular property have fallen since the early part of last month.

In fact, the price comparison firm reports that since December 11th 2007, ten different mortgage lenders in the UK have stopped offering deals that give homebuyers a 100 per cent LTV rate.

Moneyfacts.co.uk suggests that the trend is not good for British consumers with limited equity or for those whose current mortgage deals are set to run out over the next few months.

"This is an understandable about turn from the lending strategies we have witnessed over the last five years or so," said David Knight, mortgage analyst from Moneyfacts.co.uk.

Last week, Fool.co.uk urged homeowners whose mortgage deals are coming to an end to seek out a tracker arrangement that will see them benefit from any cuts in the base rate of interest.

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