Maximum LTV drops
May 6th, 2008 by 
Guy
The maximum average LTV for mortgages has fallen from to just 87.6% as a result of lenders tightening lending criteria on the best mortgage deals available.
Mform.co.uk the comparison website says the max LTV for purchases on the majority of two-year fixed rate deals dropped from 93% in May last year to about 85% in April 2008.
This was the biggest drop of all five mortgage product areas thatMform.co.uk analysed.
Four out of five areas reviewed had max LTVs for purchases of under 90% in April, compared to only two product areas in May last year.
Francis Ghiloni, marketing and business development director at Mform.co.uk, says: “The credit crunch has not only seen mortgage rates and fees rise, it has also resulted in many lenders reducing their maximum LTVs.
“All aspects of the mortgage market have been affected and it has never been more important for people to search for the best deal for them than now. The dominant issue in the mortgage market remains the availability of loans but borrowers have to focus on the true cost of their mortgage above all else.”
Posted in Mortgage news | 