Data from Mortgage Broker Tools (MBT) showed that in 48 per cent of enquiries in January, no lender was able to lend above 90 per cent LTV. In March this improved and fell to 17 per cent.
Despite the recovery in lenders able to serve borrowers requiring mortgages of 90 per cent LTV and above, they were still not achieving their desired loan amounts.
During the month, 45 per cent of customers did not receive the loan amount they needed for a mortgage of 90 per cent LTV or above.
Although provision of low deposit mortgages has got better, the sustained lack of 95 per cent LTV mortgages is still impacting demand.
The proportion of searches for 95 per cent LTV mortgages accounted for 4.9 per cent in March compared to 14.1 per cent of enquiries a year ago. However, this appeared to be picking back up as MBT data showed that so far in April, 95 per cent LTV searches were making up 10 per cent of enquiries.
Tanya Toumadj (pictured), chief executive at Mortgage Broker Tools, said: “There is strong and growing demand for high LTV mortgages and an increasing number of products available to meet that demand.
“However, it is still difficult for customers to prove eligibility for those products as, when it comes to higher LTV loans, lenders take a much stricter approach to affordability.”
She added: “There is still a spread and so thorough research of all the options is the only way for brokers to ensure they are advising on the most suitable options for their clients.”
