Providers 'get tougher' on mortgages

Mortgage lenders are getting tougher by cutting the maximum loan-to-values they offer, new research has indicated.

According to Moneyfacts.co.uk, this trend can be traced back to December 2007, when 11 providers decreased amounts.

David Knight, mortgage analyst at Moneyfacts.co.uk, commented that people may find the amount of options open to them limited in the future if this "conservative approach" continues.

In addition, putting away for a deposit will cut interest rates in the future, the company added.

"Anyone looking to take their first step onto the property ladder should carefully consider the risks of taking a high loan to value product. Plan and save for a deposit," he said.

Meanwhile, research from money charity Credit Action has revealed the total amount of debt the UK is currently in.

According to the finance group, national arrears have reached more than £1.3 trillion.

Related Articles:
Take a year off mortgage payments with Nationwide competition
Dream home 'kept in mind by 60 per cent of Brits'
Property 'key goal for under 30s'
Most property buyers 'would look abroad to purchase'
Parents 'spend more time helping first-borns on ladder'