Overall, the brokerage found 11 per cent of its clients were now resorting to products which offered 100 per cent LTV or more, compared with 2005.
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It claimed the proliferation of high LTV products showed the lengths which first-time buyers (FTBs) were prepared to go to buy a property.
Brian Murphy, lending manager at MAB, commented: â100 per cent and 100 per cent plus LTV products are just two examples of products designed to help and facilitate FTBs access to the market. Many in the market still view these products as a final resort. However, as seen through the increasing numbers of buyers opting for these products in 2006, these mortgages are now a very real solution for FTBs who stand little hope of entering the housing market without them.â
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MAB also warned borrowers taking out high LTV products needed to be aware of the potential risks, especially if they were taking them out to save money for furnishings.
However, it believed increased competition among lenders at this end of the market would make these deals more competitive in the future.
Jonathan Cornell, technical director at Hamptons International Mortgages, agreed: âBM Solutions has come into the market and injected a much needed boost, which meant Northern Rock had to respond by lowering rates. Now Alliance & Leicester is talking about entering, so with more lenders offering these products, rates have to come down.â
