LTVs at lowest level since early 1980s


The average first time buyer had a deposit of 15% in July, up from 13% in June, bringing the loan-to-value (LTV) ratio down to the lowest level since the early 1980s, according to the Council of Mortgage Lenders (CML).

First-time buyers typically borrowed 3.24 times their income, down from 3.33 in June and the lowest multiple since July 2006. Tighter lending criteria contributed to a 50% fall in loans to first time buyers in July compared to July 2007 at 17,300, down 5% on June. The CML also attributed the decline to the wait-and-see approach taken by many first time buyers as house prices continue to fall. Total gross lending rose 5% to £24.7bn in July from £23.6bn in June, but this is a decline of 28% from a year ago and the ninth consecutive monthly year-on-year decline. Tracker rate mortgages ha...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes



Already a Professional Adviser member?


More on Mortgages

Client conundrum: Mortgage overpayments versus investments

Client conundrum: Mortgage overpayments versus investments

1.4 million people will see mortgage deals end this year

Laura Suter
clock 22 February 2023 • 3 min read

Summer economic update: Sunak confirms stamp duty holiday in 'mini-Budget'

Mini Budget

Hannah Godfrey
clock 08 July 2020 • 2 min read

FCA sounds alarm on equity release advice

'Tick-box exercise'

Hannah Godfrey
clock 17 June 2020 • 1 min read