Sesame is calling for lenders to resume normal risk-based lending and to increase loan to values (LTVs) to a minimum of 90%.
John Cupis, managing director of mortgages and general insurance at Sesame, says first time buyers hold the key to building the momentum behind a sustainable recovery. However, he believes this will never happen if lenders do not step up to the plate and start lending at higher LTVs. He says: "Now is the time to resume normal risk-based lending and to move back to the core competency of assessing risk and demonstrating underwriting skills. "Government-owned banks have recently made some effort to lend at higher loan to values, but what is really needed is a widespread commitment by...
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