Best Loans News

For the past couple of years now, one of the main stumbling blocks for those individuals looking for a new home owner loan has been that of saving up a large enough deposit in order to meet lenders strict criteria on Maximum loan to value ratios.

But as banks and building societies slowly start to relax their lending criteria, the average level of loan to value across new home owner loans has started to see an increase, according to a newly published survey.

The report from E.Surv Chartered Surveyors found that the average loan to value throughout the month of December last year had risen to 58.9 per cent and although this figure is significantly below the high of 2006, when the average loan to value was 69 per cent, it is a vast improvement on the low point in December 2008, when the figure was just 49.4 per cent.

Although the average loan to value had increased significantly, the survey also showed that the total number of home owner loans and mortgages being approved had dropped from the previous year and was actually the second lowest level of new loans since records began.

Although the overall figures for December were particularly low, E.Surv were still fairly optimistic, blaming the lower number of new loans on the bad weather conditions over the period.

Richard Sexton of E,Surv said “There is no doubt that lenders are being selective with their limited funds, growing their business by supporting wealthier customers and offering them even more generous terms.”

“For the long term health of the housing market, borrowers and lenders alike, it is important that the bottom of the market is not neglected.”