15
Jan
Lenders cutting loan to value rates
Mortgage lenders in the UK have been reducing the loan to value
(LTV) rates that they offer their customers, according to recent
research.
Figures compiled recently by Moneyfacts.co.uk show that the amounts
that mortgage providers are willing to lend to consumers against
the value of a particular property have fallen since the early part
of last month.
In fact, the price comparison firm reports that since December 11th
2007, ten different mortgage lenders in the UK have stopped
offering deals that give homebuyers a 100 per cent LTV rate.
Moneyfacts.co.uk suggests that the trend is not good for British
consumers with limited equity or for those whose current mortgage
deals are set to run out over the next few months.
"This is an understandable about turn from the lending strategies
we have witnessed over the last five years or so," said David
Knight, mortgage analyst from Moneyfacts.co.uk.
Last week, Fool.co.uk urged homeowners whose mortgage deals are
coming to an end to seek out a tracker arrangement that will see
them benefit from any cuts in the base rate of interest.
