Higher loan-to-values 'becoming more accessible'

The increasing tendency among lenders to offer higher loan-to-values is a positive sign for those seeking cheap mortgage rates, it has been claimed.

Ben Wilkie, editor of What Mortgage, said the market appeared to be returning to its pre-recession state - when only 16 per cent of the deals on offer asked for a 25 per cent deposit.

He said: "I think there's a bit more confidence in the market; the housing market seems to be back on a slightly more even keel and there's bit more confidence to mortgage companies."

Mr Wilkie added that lenders were now having to be more flexible with their loan-to-values in order to attract customers.

"It really should help first-time buyers, because even to get a ten per cent deposit is hard enough and to get any higher than that is outrageous, for many people," he added.

According to the Council of Mortgage Lenders, gross mortgage lending declined to an estimated £9.1 billion in January 2010 - a 32 per cent fall from £13.4 billion in December 2009.

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2010-03-09 13:15:15 © Moneyextra.com