In recent months, we have started to see a slight return of high loan to value products in the home owner loan sector, many of which have been aimed at first timer buyers in an attempt to help them get onto the housing market with an affordable loan. However, whilst most people are encouraging high loan to value loan deals and welcoming the relaxation of lending criteria from banks and building societies, one think tank has suggested that there should be a cap placed on maximum loan to value as well as income multiples. The Institute for Public Policy Research (IPPR) has called for a maximum of 90 per cent loan to value across the home owner loan and mortgage market, as well as suggesting that loan applicants should not be allowed to borrow any more than 3.5 times their joint income
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Calls For 90 Per Cent Cap On Loans
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