Mortgage LTV cap may affect FTBs

Posted: 08 Feb 2012 12:19:05 GMT

FTBs are likely to be unsettled by any cap on mortgage loan-to-value ratios.

Any cap on mortgage loan-to-value (LTV) ratios is likely to be felt by first-time buyers (FTBs) in particular.

This is according to Karen Barrett, chief executive of unbiased.co.uk, who was speaking in response to news that the Financial Services Bill could provide the Financial Policy Committee with the power to impose such restrictions.

The suggestion was made by chancellor George Osborne - but Ms Barrett said the move would prove unsettling for FTBs and other home buyers in general.

She pointed out FTBs already have a difficult time trying to scrimp together a deposit substantial enough to access a competitive home loan offering, with this group still finding it hard to enter the housing market despite a number of high LTV products re-entering the sector.

The industry figure - who joined unbiased.co.uk in 2001 - went on to suggest: "Taking mortgage advice is key when it comes to arranging your finances for a house purchase."

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