Future Mortgages slashes loan-to-value ratio by 20%

Specialist lender Future Mortgages plans to slash the maximum loan-to-value ratio by up to 20 per cent today for its prime and near-prime products.

Future Mortgages has reviewed its lending due to soaring demand for mortgages as well as daily price increases from competitors, resulting in the decision to tighten lending criteria.

The latest research from the Abbey Mortgage Index confirms that mortgage lenders can expect a high demand for five-year fixed rate mortgages, despite recent reports that the mortgage market is declining.

Additionally, the number of people who would choose any type of fixed mortgage product has risen from 35 per cent last month to 53 per cent this month. However tracker mortgages are less popular with only five per cent of respondents opting for them compared to 12 per cent last quarter.

Commenting on Future Mortgages’ decision, a spokesman said: “We see these actions as prudent and a strong indication of our desire to retain a market position in chosen sectors while simultaneously maintaining our servicing proposition in these challenging times.”

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