First-time buyers benefiting from LTV boost?

Posted: 17 Feb 2011 13:24:50 GMT

Research has indicated more high-LTV products are being made available.

An increase in high loan-to-value (LTV) mortgages could be helping potential homeowners enter the market.

Research by Moneyfacts.co.uk has indicated there are currently 214 deals available to buyers with a ten per cent deposit, up from 144 in February 2010.

And the number of products at 85 per cent LTV has risen from 310 to 560 in the last 12 months.

Spokeswoman for the price comparison site Louise Holmes said the trend is particularly beneficial for first-time buyers, many of whom have been struggling to find appropriate mortgages.

"Over recent months some lenders have increased their rates and expanded their number of higher LTV deals, suggesting that the market could be returning to a competitive, rather than risk-based, state," she added.

Earlier this month, Paul Staley of Connells Survey and Valuation noted that while the property sector enjoyed a strong start to the year, mortgage availability is preventing many first-time buyers from making a purchase.
 

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