Mortgage lenders tighten lending criteria
Mortgage lenders have tightened certain criteria for this month.
Numerous lenders have slowed down the total loan-to-value (LTV) which has been offered to borrowers. Many mortgage lenders have stopped lending 100 per cent of the house value and generated different types of clause when lending high amounts.
Looking at this months figures, Britannia and Egg have slowen the maximum they will lend from 95 per cent of a house’s value to 90 per cent. Lenders have been drawing back how much they shall lend in response to expanding fears of increases in house repossessions this year.
David Knight, mortgage analyst working with Moneyfacts.co.uk commented: “This is an understandable about-turn from the lending strategies we have witnessed over the last five years or so, when lenders pushed LTVs to highs of 130 per cent, with 95 per cent products considered the norm,”.
He added, lenders start to reduce their exposure to property price fluctuations – showed they had “a real concern over the future of the UK housing market”.
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