The world of finance is a bit like that of fashion insofar as, to insiders, it can seem like a dazzling array of brilliantly interconnected pieces, while, to outsiders, it can seem at once confusing and impenetrable. However, nothing could be further from the truth. Whether or not you can pull off the latest fall and winter lines this season, the fact remains that lending in general and LTV lending in particular both can, with the right introduction, be readily accessible to clients.
Here, then, is a quick overview of where the data says the industry is headed today.
An Overview of LTVs
For those not in the know, Loan-to-Value Lending is a form of lending that is commonly used by lenders to refer to the ratio of the value of a loan to the value of a given asset. Banks and building teams commonly employ this term in relation to topics such as first mortgage lines. The most commonly sought after ratio for LTV lending is 80%.
Reasons for Borrowing
When it comes to pulling off a successful bridging loan, there are likewise many different factors at play, some of which are reflected in the reasons for which people tend to seek out loans in the first place. In tracking data of eight different lending categories monitored by Knowledge Bank, “Maximum LVTs” were ranked within the top five. Needless to say, this demonstrates an increased and sustained interest in LVTs in the current lending climate. This, in turn, may be seen as an outgrowth of borrowers looking to secure funds for their mortgages. For the second month in a row, this has been ranked as the second most prominent reason that individuals seek out these types of loans. Maximum LTVs came in fourth on that same list. Personal employment reasons topped the list, with rental concerns and commercial lending likewise ranking highly.
These numbers reveal a continued interest in putting money into one’s own property as a means of investing in the future. This is good news for those lending LTVs for that purpose as well as consumers looking to pull off such an investment. Beyond the numbers themselves, there is certainly something very satisfying about being able to increase the value of one’s own home. In addition to that, the numbers themselves do indeed bear out the importance and veracity of such an action. In buy-to-let searches for loans, first-time buyers, as well as landlords, ranked more highly than those involved in the rental industry.
Last but not least, it’s worth taking a look at how all of this impacts the commercial sector. While this type of lending is often associated with the domestic sphere in general and mortgage lending in particular, there remains a market for commercial LTVs. “Limited company buy-to-let” was, as a search term, slightly more popular than in previous examinations conducted by Knowledge Bank, with “commercial lending mortgages” ranking as the top search term with respect to commercial loans.
All of this paints a picture of growing interest and bright futures for LTV lending and borrowers.