High loan to value mortgages have reached record levels of popularity at a time when consumer finances are becoming increasingly stretched, according to Spicerhaart Financial Services.
Spicerhaart’s monthly survey revealed mortgages worth 95% or more of a property’s value now represent 19% of the market, up from 18% in May. This has more than doubled since the beginning of the year, when high loan to value mortgages accounted for just 9% of the market. Steve Cox, operations director of Spicerhaart, says: “We have witnessed a marked growth in high loan to value mortgages this year and there is no doubt that affordability is becoming a problem for the majority of homeowners.” The increasing popularity of high loan to value products has meant that the level of first time ...
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