Jump in the number of loan deals

Within the period of the past twelve months, there was a significant rise in the number of home owner loan deals, especially for those borrowers who prefer a high LTV product.

The latest study by Moneyfacts has shown that 384 different loan products can be availed for an LTV of up to 80%, compared with just 153 separate loan deals of the same kind last year. These figures show an increase of 151%.

Even though the same period saw a huge jump in the number of loan deals offering 70-90% LTV, there were less loan deals offering 60% LTV.

However, many potential borrowers are not inclined to assume a serious financial commitment of obtaining a large loan in the current volatile economic environment. A great number of them are trying to scrap every dime to raise the necessary deposit, or to make the potential regular loan repayments affordable.

Still, with all the variety of choice of loan deals available on the market which offer a high LTV, many of these deals cannot be called cheap unlike loan deals which oblige the borrower to put down a bigger deposit.

Moreover, most fixed rate loan deals are characterized by a higher interest rate than analogous tracker rate loan, since loan providers want to make sure that they won’t lose money if interest rates go up.



The cultural transformations that have made people accept life in debt have had a direct impact on the approach youngsters take to money matters, which could lead to negative consequences in the long run as many of the next generation would resort to IVAs to cope with serious financial issues.

When we put efforts into our work and get paid for this, we get an amazing feeling of satisfaction. Our hard hard work seems to have been remunerated financially. We go shopping and buy the items we need and the items we simply want.