Bank of England issues warning on risky lending on mortgages
For first time buyers struggling to raise a deposit they’re a godsend but it seems the risky lending in high loan to value mortgages are not looked upon too kindly by everybody. The Bank of England has issued a warning over the number of mortgages being offered with a high LTV or loan to income ratio.
In notes from its latest Financial Policy Committee meeting it was reportedly said there were risks relating to “household indebtedness and mortgage underwriting standards.”
The warning comes after Moneyfacts revealed the number of 95% LTV mortgages on the market today is the highest it’s been since April 2008, with 307 currently on offer.
Kindly shared by HomeOwners Alliance