“Today’s figures from CML are something of a double-edged sword. Firstly, with lending volumes up by 21% between April and May, they show mortgage lenders are very much open for business and willing to compete over pricing for higher loan to value (LTV) deals. Despite capital requirements curbing lending, borrowers’ chances of securing a low deposit mortgage are certainly improving.
“But let’s not forget that higher LTV mortgages are of limited use if property is in short supply and house prices are pushed even higher by the imbalance. We can take heart from improving conditions, but now is the time for a proper discussion involving government and industry on the future of housing policy in the UK. Otherwise, we may find a momentum building that slips out of our control.”
IMLA’s report Rebalancing the housing and mortgage markets — critical issues was published in June 2013.