High LTV mortgages returning to the market

The number of 90 per cent loan-to-value LTV mortgages on the market has increased by 26 per cent in the past month, it has been reported.

Research conducted by Moneyfacts indicates that there were 144 mortgages requiring a ten per cent deposit at the start of February, compared to 114 at the beginning of the year.

Commenting on the report, Katie Tucker, technical manager at mortgageforce, said the number of high loan-to-value mortgages has "soared" recently.

However, she claimed few lenders were making cheap mortgage rates available, with the price of many deals proving to be "off-putting" to customers.

"You are looking at six months really before 90 per cent deals get any more competitive," Ms Tucker added.

Later on in the year, the situation may begin to improve, she predicted.

The Bank of England has announced that there were 59,023 new mortgage approvals in December 2009, compared to 60,045 in November and 57,449 in October.

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2010-02-05 08:44:00 © Moneyextra.com