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Posted by Helen Jones

Prospective homeowners in the UK without a large deposit to put down on a residential property have been warned that mortgage deals with high loan-to-value (LTV) rates will not become more widely available in the near future.

According to Ben Wilkie, editor at What Mortgage, many banks and building societies will resist any calls to increase the number of 90 and 95 per cent LTV home loans - which could be ideal for first-time buyers - on the market as they fear this could result in consumers being pushed into negative equity.

Mr Wilkie explained that the "new rules regarding capital ratios" will also put financiers off from widening their ranges of such products, on the basis that high LTVs will now be "more expensive for them".

These comments came after the publication of research by Santander recently (May 4th), which showed that the average person expects to spend 3.3 years saving up a deposit to secure their first home.
 

10/05/2011 14:15