The Intermediary Mortgage Lender Association has reassured potential residential buyers that 90% LTV mortgage lending will return.
Lenders, including Virgin Money, have pulled their 90% LTV range after apparently receiving too much demand.
Kate Davies, executive director of the Intermediary Mortgage Lenders Association, said: “There is a particularly high level of demand in the market for high LTV mortgages, which has led some lenders to temporarily withdraw their products.
“These are responsible decisions which reflect lenders’ commitments to supporting their existing customers and ensuring service levels are unaffected by a surge in application volumes. Providers are also limited by regulation on the amount of higher LTV lending they are able to conduct.
“However, lenders will be eager to return to this area of the market when service levels allow. Lending at 90% and above is vital for first-time buyers and borrowers with smaller deposits, and the pent-up demand we are seeing is certainly a positive sign for the mortgage market as we emerge from this crisis.”
This post has originally been featured in Property Wire.