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Lenders will be eager to return to 90% LTV, says IMLA

The recent return of a number of lenders to 90% loan-to-value (LTV) lending, followed by swift withdrawal once again for some, reflected responsible decision-making in the current market, according to the Intermediary Mortgage Lenders Association (IMLA).


Most recently, firms that have temporarily removed 90% lending include Ipswich Building Society, Virgin, and Accord Mortgages; meanwhile, Coventry for Intermediaries launched a weekend-only tranche of products to moderate demand.

Kate Davies, executive director of IMLA, said: “As lockdown measures have started to ease and the housing market has reopened, several lenders have taken steps back into 90% [LTV] lending.

“However, it has since become clear that there is a particularly high level of demand in the market for high LTV mortgages, which has led some lenders to temporarily withdraw their products.

“These are responsible decisions which reflect lenders’ commitments to supporting their existing customers and ensuring service levels are unaffected by a surge in application volumes.

“Providers are also limited by regulation on the amount of higher LTV lending they are able to conduct.”

This will be a temporary state of affairs, she added, while lenders wait for the right moment to fully reenter this portion of the market.

Davies said: “Lenders will be eager to return to this area of the market when service levels allow.

“Lending at 90% and above is vital for first-time buyers and borrowers with smaller deposits, and the pent-up demand we are seeing is certainly a positive sign for the mortgage market as we emerge from this crisis.”


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Mortgage Tree offers a nationwide mortgage broking service from our base near York, North Yorkshire. We specialise in mortgages and insurance. Whether you are a first time buyer or you are a buy to let investor with multiple properties, Mortgage Tree will ensure that you get the best products available.

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