High-LTV buyers 'need more debt help'
High-LTV buyers 'need more debt help'
- Monday, 1 June 2009Homeowners with little equity could be finding it difficult to manage debts as one industry expert notes an imbalance in the mortgage market.
Paul Broadhead, head of mortgage policy at the Building Societies Association, explains that the demand which currently exists from prospective buyers is for high loan-to-value (LTV) mortgages.
These are taken by individuals who have little money to place as a deposit, or need extra cash to cover other costs associated with buying a house.
But Mr Broadhead notes that the tightened availability of
debt help has seen LTVs of 100 or 125 per cent removed from the market.
He adds that 90 to 95 per cent mortgages are still available, however - and that the potential customers for such loans are typically able to be trusted to manage debts successfully.
"The likelihood of them going into arrears is very, very low," he comments.
However, with much of the current supply of funding focused on the lower-LTV end of the market, such households could be left looking elsewhere for
debt help.

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