Wednesday, May 7, 2008
Downward spirall gathers more momentum
Woolwich has cut the maximum loan to value (LTV) it will offer mortgage customers to 90% from 95% in response to falling house prices. The Barclays subsidiary said it was prudent to cut back the proportion it will lend against the value of properties to avoid homeowners seeing their equity eroded by falling house prices. ‘The market is constantly changing and we have seen in recent weeks that there has started to be a decline in property prices,’ said a Woolwich spokesman.