Access is easier to high LTVs

Access to higher loan-to-value LTV mortgages has become easier in the past few months, it has been claimed.

Ray Boulger, senior technical manager at the mortgage advisor John Charcol, said that the good news to people seeking cheap mortgages is that there is "definitely more competition" compared to last year.

This competition has seen LTVs of 80 and 85 per cent become more readily accessible.

"In some respects it has got a bit easier – particularly for those people who don't have much equity. What we have seen over the last year is rather more competition in the market for loans up to 80 and 85 per cent [loan-to-value]," Mr Boulger said.

However, he added that it is still difficult to get LTVs of 90 per cent, adding that lenders who do offer them often have "pretty high" mortgage rates on them.

His comments follow the release of figures from the British Bankers' Association BBA, which show that the number of new mortgage approvals for house purchases increased slightly to 31,660 in March.

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2011-04-28 15:33:56 © Moneyextra.com