Black Horse, a subsidiary of Lloyds Banking Group has increased its maximum LTV to 80% for secured loans, after seeing signs of stability in the housing market.

The lender says although market conditions are expected to remain difficult, there are now signs of stability in the market with a noticeable slowdown in the rate of house price decline experienced in 2008.

It says this stabilisation has allowed it to re-consider our LTV position in the secured loan market and increase it from 75% on a number of its secured loan products.

In a broker bulletin, the lender says: “Although this represents a slight increase in risk associated with LTV, this will be offset by allowing us to potentially transfer higher advance unsecured proposals onto secured loans, and therefore reducing our overall risk exposure.”

Steve Walker, managing director of Promise Solutions hopes the move will prompt other secured loan lenders into offering higher LTVs for secured loans.

He says: “This is a positive step in the right direction and will really help our introducers in sourcing secured loans during difficult times.

“Hopefully Blackhorse’s announcement will assist other secured loan lenders in obtaining more funding in the secured loan sector and encourage them to relax criteria a little.

“The demand for secured loans is still strong but even prime borrowers often don’t qualify, or will not accept the higher rates being offered on a secured loan.”

Posted 19/07/2009 10:12:52