Countrywide’s financial services director, Nigel Stockton, said he was pleased the two trade bodies were looking at this because if LTVs could be raised on new build it would “move the market”.
He said: “I’m delighted the CML had the meeting with the HBF six weeks ago and two weeks ago, and I believe they have another one planned. If we can move LTVs up on new build that would move the market most quickly.”
He said the lack of high LTV products was understandable from a lender perspective but that the market needed more of them to recover.
“Nationwide and Skipton’s move to offer 95% products are encouraging signs. The new home LTV cap is now the biggest thing stopping the new homes market moving forward.
“Lenders will only lend 75% on new homes versus 85% on rest of market. That 10% gap is across the whole piece. We cannot get 85% LTVs on new build apartments.
The CML confirmed it was in talks with the HBF and said it would release further details when it could confirm the outcome of these discussions.
