Lending squeeze ‘disproportionate’
Banks seem to be tightening their lending, according to surveyors e.surv.
The average loan-to-value (LTV) dropped to 57.2 per cent in September from a two-year high of 58.1 per cent in August, the biggest fall in LTVs in a year.
Not all buyers are being treated equally. The squeeze is tightest for those buying lower value property, while those buying more expensive homes have seen far less change in their access to finance.
Richard Sexton of e.surv says: “Tighter loan to value criteria have hurt everybody, but those at the bottom of the ladder have been hit disproportionately.”