The Intermediary Mortgage Lenders Association (IMLA) has suggested that lenders have been committed to supporting their existing customers since the housing market reopened.

The association highlighted that support had been reflected in several moves made by lenders since the reopening of the market, including the relaunching of 90% loan-to-value (LTV) products.

Several lenders, including Accord Mortgages and Ipswich Building Society, had recently relaunched the 90% LTV products available to their customers, but have since chosen to temporarily withdraw them in response to high levels of demand.

IMLA suggested these withdrawals have since ensured service levels remain “unaffected by a surge in application volumes”.

“As lockdown measures have started to ease and the housing market has reopened, several lenders have taken steps back into 90% LTV lending,” IMLA executive director, Kate Davies, said. “However, it has since become clear that there is a particularly high level of demand in the market for high LTV mortgages, which has led some lenders to temporarily withdraw their products.
 
“These are responsible decisions which reflect lenders’ commitments to supporting their existing customers and ensuring service levels are unaffected by a surge in application volumes. Providers are also limited by regulation on the amount of higher LTV lending they are able to conduct.
 
“However, lenders will be eager to return to this area of the market when service levels allow. Lending at 90% and above is vital for first-time buyers and borrowers with smaller deposits, and the pent-up demand we are seeing is certainly a positive sign for the mortgage market as we emerge from this crisis.”

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