The return of 100% LTV mortgages remains a distant prospect as lenders face huge capital adequacy requirements, according to First Action Finance’s head of communication, Jonathan Cornell.
Speaking at the Mortgage Business Expo in Manchester, Cornell told delegates the market was a “long, long way from 100% products”, with a huge difference remaining between such loans and 90% and 95% deals.
He said: “People tend to get cross with lenders and ask why they don’t do higher LTVs. But the sad fact is that lenders have to put aside huge amounts of capital to lend 90% LTV.”
Cornell said that part of the growth in high LTVs was down to lenders using MIGs with new build developers, something he believes we will see much more of in the future.
