Franky on Finance

Eleven mortgage lenders have reduced the amount of money they will lend to home-buyers by cutting their maximum loan-to-value (LTV) on at least some of their products.  Some have stopped offering 100% mortgages, while others including Newcastle Building Society, will now only offer such loans when the borrower has a guarantor.  Meanwhile, others including Alliance & Leicester have cut the maximum amount they will lend to 90% of a property’s value instead of the usual 95% on at least some products so far.  The big lenders like Halifax, Abbey and Nationwide continue to offer 95% loans but the interest rates they charge may move higher as competition diminishes.