Lenders soften up on loan-to-value ratios

Lenders are softening up on their loan-to-value (LTV) ratios, according to MoneyExpert.com.

Research by the price comparison website shows the number of fixed-rate deals at 90% LTV or above almost doubling in the last 12 months, with 147 products to choose from today, up from 78 this time last year.

However, those seeking LTVs of above 90% have only 61 home loans to choose from, up from 43 last year.

In the overall fixed-rate market, the number of mortgages available has risen 46% since February 2009 with the average LTV on a fixed-rate deal now at 76.8%, increasing from 75.7% 12 months ago.

MoneyExpert.com’s head of research, Pierre Williams, says: “Measured optimism over the housing market …. seems to be encouraging higher value lending.”

He adds: “We’re some way off the flurry of 100% deals of previous years and that is a good thing to some extent but it seems that door is opening up.”

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