Average LTV hits 70% as lenders relax grip on credit

Average LTV in December 2009 was 3% higher than in November 2009 (67%), suggesting banks are starting to relax their lending criteria and loan at higher levels again. On new residential purchase mortgages arranged in Q4 2009 average LTV was 68%, the same figure as the previous quarter. More borrowers chose variable rate products over fixed rate mortgages for the second consecutive month, with variable rate mortgage transactions at 60% in December.  This compares to 53% of transactions in November. Only 40% of mortgages arranged in December 2009 were on fixed rates compared to 80% ...