Mortgage Lending at 90%+ LTV Ratios Hits Highest Levels Since 2008

Mortgage lending at loan-to-value (LTV) ratios above 90% has reached its highest levels since 2008, according to recent data from the Bank of England.

The latest Mortgage Lenders and Administrators Statistics show that mortgages with LTVs exceeding 90% increased significantly in the second quarter of 2026. This is attributed to a loosening of mortgage lending rules by the Financial Conduct Authority last year, aimed at widening borrowing options and easing affordability pressures.

Rachel Springall, finance expert at Moneyfacts, noted that the proportion of lending at 90%+ LTV ratios is indicative of 'how vital low-deposit borrowing has become in the housing market'. She emphasized the need for lenders to continue adjusting their affordability criteria fairly and creating innovative products to help borrowers.

The value of gross mortgage advances increased by 11.1% from the previous quarter to £77.4 billion, with new mortgage commitments rising by 1.4% to £79.2 billion. Rob Clifford, chief executive of Stonebridge mortgage and protection network, stated that 'huge momentum' remains present in the mortgage market, despite recent complications.