Managing Director, Alan Margolis said the move arose out of a number of factors, including empirical evidence that the Group's refocus on getting to know its customers better was paying dividends by way of safer loans, the easing of the decline in property prices and that, notwithstanding the general difficulties in the mortgage market, refinance products are available.
National Sales Manager, Gareth Lewis commented " At Cheval, we are constantly reviewing all aspects of the lending environment and have judged that the time is now right to offer 70% LTV loans to those customers who can evidence affordability and where the security property is a family house - property for which we believe there is pent up demand."
As a responsible short term lender, Cheval continues to focus on the "take out" - i.e. how the loan will be repaid. This focus hasn't changed, and we acknowledge that the general poor state of the housing market makes the sale of a property more problematic.
However, where the client has the ability to refinance their Cheval loan, or where there is a sensible disposal strategy for a property which we and our customer believes will sell, then a 70% LTV can work for all concerned"
