A regression analysis on about 54000 loans with a mix of vintages shows that for LTVs
above 80% the foreclosure frequency increase associated with higher LTVs
becomes greater when DTIs are higher too.
By 2015, the LTVs
on maturing office sector loans will exceed those of new loans in all regions.
However, it may be a sign that the mortgage market is moving back towards the 100% LTV
rate, and "while this would no doubt be saluted by first-time buyers, it could be seen as a danger sign that the industry is creeping back towards irresponsible lending.''
A NEW mortgage deal from Santander helps homebuyers by cutting rates by up to 0.35% - and upping the loan-tovalue (LTV
) limit on advances from 60% to 70%.
TO help first-time buyers, Yorkshire Building Society has cut fixed rates on its 90% loan-to-value (LTV
) mortgages by up to 0.25%, with two-year fixes from 4.49%.
In 1991, over 93 percent of Fannie's loans had LTVs
of 80% or lower.
The willingness to lend higher LTVs
is good news, but there's a sting in the tail as providers get even choosier as to who they will lend to.
Nici Audhlam-Gardiner, Abbey mortgage director, said: "Increasing the loan to value (LTV
) ratio on all our fixed rate mortgages that were previously available at 60 per cent LTV
to 70 per cent LTV
will help those looking to purchase a property, move home or remortgage.
Cliffs and Lurgi have entered into a non-binding letter of intent to purchase LTVs
46.5% interest in CAL.
Therefore, we developed a model for estimating LTVs
for home purchase loans reported in the 1995 HMDA data using preliminary information from the Federal Reserve's 1995 Survey of Consumer Finances (details of this procedure are available upon request from the authors).
While MBA generally is supportive of a range of LTVs
, we believe that in practice the first alternative will be unworkable.