Higher LTV mortgages expected in 2013

Published: 08/01/2013

Good news for borrowers struggling to raise the sizeable deposits needed for conveyancing as lenders expect higher loan to value (LTV) mortgage availability will increase in Q1 2013.

In 2012, the average deposit required for a first time buyer was 17%:

Deposit daydreams

While there was a noticeable reintroduction of 90 and 95 per cent LTV mortgages towards the end of the year, the criteria surrounding them meant, for many, these deal remained far from reach. However there is a degree of hope and belief that availability of such mortgages will increase in Q1 2013.

The Bank of England survey says:

“The availability of secured credit was expected to increase significantly further in 2013 Q1, again driven by market share objectives and a slight continued easing in wholesale funding conditions, as we as, for some lenders, increased appetite risk. The increase in availability was expected to occur across LTV ratios.”

Content correct at time of publication