High LTV mortgages 'reach record levels'High LTV mortgages 'reach record levels'
High loan-to-value (LTV) mortgages reached a record level of 19 per cent in June, up from 18 per cent in May, a new study has found.
At the beginning of 2007, only nine per cent of clients borrowed at least 95 per cent of the value of their property.
But according to Spicerhaart Financial Services' latest survey, high LTV mortgages are now over 100 per cent higher than at the start of the year.
Steve Cox, operations director, said: "We have witnessed a marked growth in high LTV mortgages this year.
"There is no doubt that affordability is becoming a problem for the majority of homeowners."
Mr Cox called on banks and intermediaries to lend responsibly, checking that they offer the most appropriate product.
Spicerhaart's survey came as the Bank of England raised interest rates by a quarter of a per cent to 5.75 per cent, meaning that homeowners now face a fresh round of higher mortgage payments.