Abbey increases LTV on fixed rate mortgages

Commenting on Abbey increasing the LTV on all fixes from 60 to 70 per cent, Louise Cuming, head of mortgages at moneysupermarket.com said: "This is a step in the right direction, and is a good example of a bank trying to help its customers - others should follow their lead. Whilst 70 per cent is still high, it will reduce the thousands of pounds required upfront for a deposit, and as house prices have dropped it will open more doors for those looking to remortgage if they have lost equity in their property.

"However, as almost one in five moneysupermarket.com mortgage channel users are looking for products at 90 per cent plus LTV, it would be better to see the bar nudging up again to give first time buyers, and those with smaller deposits, a realistic chance of getting a mortgage at a competitive rate of interest.

"Currently, prospective borrowers should look to save as large a deposit as possible before making their move into the market. Building at least a 20 per cent deposit is likely to mean significantly lower monthly repayments."