High loan-to-value mortgage lending’s share of the market fell in the second half of 2015, today’s Bank of England Mortgage Lenders and Administrators Return statistics have revealed.
High loan-to-value mortgage lending’s share of the market fell in the second half of 2015, today’s Bank of England Mortgage Lenders and Administrators Return statistics have revealed.
In the second quarter of 2015 lending from 90% to 95% LTV had a 3.3% share before falling to 3.1% in the third quarter and 3.0% in the fourth quarter.
Jeremy Duncombe, director of Legal & General Mortgage Club, said: “Lenders’ risk appetite’ don’t seem to be increasing.
“This doesn’t improve the positions of first-time buyers and those with smaller deposits looking to take a step onto or up the property ladder, but who may be struggling to save the large sums required to buy in a demand-centric market.”
The proportion of lending to first-time buyers rose by from 18.9% in first quarter of 2015 to 20.9% in the fourth, however in the final quarter of 2014 it stood at 21.6%.
Brian Murphy, head of lending at Mortgage Advice Bureau, said: “Is important that homeownership is supported through the provision of higher LTV products.
“It is positive to see that lending to first-time buyers has increased over the last 12 months however, and the government has shown its willingness to support aspiring homeowners through affordability schemes such as Help to Buy.”
The data also found that fixed rate mortgages accounted for 84.1% of the market in quarter four, up from 80.7% in quarter three.
The average mortgage interest rate fell by 0.05% in the fourth quarter to 2.71% – the lowest rate on record.
