One of the largest independent London estate agents has claimed that the return of higher loan-to-value mortgages suggests confidence is returning to the market.
The property market may be nearing the end of its slump, according to the director of sales at one of London's largest independent estate agents.
Ed Mead, from Douglas & Gordon, explained that some mortgage lenders are beginning to offer higher loan-to-value mortgages. These deals make it easier for people to get onto the property ladder and indicate confidence in the market, as they are generally higher risk.
Mr Mead said that "one or two" of these companies are offering 75 percent-plus loan-to-value deals, while some are even offering 90 percent loans. "That does seem to imply that one or two of the lending institutions feel that prices are getting quite close to the bottom," he said.
The problem of mortgage availability has been blamed for a wide series of problems in the economy. The construction industry has suffered badly because it has been unable to sell stock and this has had a knock-on effect on other sectors.
However, Mr Mead said that if some lenders are offering these types of deals, "that must imply to some extent, even if they are offering relatively punitive interest rates, that there is some confidence that we are nearing the bottom".
