From Money Extra:
Despite the total UK personal debt burden now approaching £1.2 trillion, major mortgage lenders have been relaxing their mortgage lending criteria by raising their LTVs (loan to value ratios). New figures from data provider, Moneyfacts, show that during September seven mortgage lenders increased their LTVs, some on selected products – others raising the minimum LTV limit on their entire product ranges by as much as 10%. This all comes against a backdrop of income multiples reaching an all time high, and an increasing number of borrowers opting for interest only mortgages and repayment terms in excess of 30 years. Bank of Scotland for example now has a minimum LTV of 85% on selected products – the previous rate being 80%. Other rates, with previous rates in brackets are: Bristol & West 95% (85%); Chelsea BS 85% (75%); Heritable Bank 80% (75%); Halifax 90% (75%), 95% (90%), NatWest 95% (selected products) – (75%) and Northern Rock 80% (75%), 90% (85%), 95% (90%). Putti…
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