According to the Bank of England’s ‘Mortgage lenders and administrators’ statistics for Q1 2025’, which measured 340 regulated lenders and administrators, the share of gross mortgage advances with LTVs over 90% was at its highest since Q2 of 2008, at 6.7%.

While the jump to 100% LTVs is not such a trend in the specialist finance market, lenders of late have been introducing products to the market offering higher ratios, such as RAW Capital increasing its maximum ratio to 70% last month, while Together raised LTVs to the same level for commercial purchase products.

Jonathan Sealey, CEO at Hope Capital, noted that while non-deposit loans may be on the rise in the mainstream market, they are specifically suited for FTBs[CR3]  rather than those requiring the specialist finance market, and should be approached with caution.

“Higher LTV loans often come with more stringent eligibility criteria and increased interest rates,” said Jonathan.

“Most lenders will cap LTV at around 70%, however, we will go up to 75% LTV, ensuring we’re providing investors with greater leverage opportunities, so our borrowers can access substantial funds while maintaining a safe equity in the property.”

The BoE has also recorded rising levels of loans being advanced between 75% and 90% LTV, with Q1 2025 seeing the highest level in 18 years at 39.1%.

Last month, Mint Property Finance launched refurbishment loans of up to 90% LTV on borrowing up to £500,000, aiming to allow consumers to leverage day-one GDV.

“It's undeniable that there is an increasing trend towards borrowers being able to take loans out at higher LTVs than in previous months and years,” said Andrew Lazare, managing director at Mint.

“I think the prevailing increase of LTVs across the specialist property finance market is a result of the increased rigor and sophistication that exists in not just Mint Property Finance, but also many of our competitor lenders.

“The specialist property finance market is now a significant sector within UK industry and, as a result, our professional standards are continuing to rise week on week, month on month, and year on year.

•   Funding 365 ups max gross LTV to 85% on light refurb
•   SDKA ups semi-commercial LTV to 75%
•   ScotLend ups AVM threshold to 75% LTV

“And it's our belief that that is another contributing factor to the increasing LTVs that are seen.”

Brokers have also noticed the rising LTV ratios in specialist finance.

“We are seeing a noticeable, albeit cautious, upward shift in LTVs across parts of the specialist finance market—particularly in bridging and complex BTL sectors,” said Jason Berry, group sales director at Crystal Specialist Finance.

He noted that while no-deposit mortgages from mainstream lenders may be attention-grabbers, specialist lenders typically stop short of 100% LTVs due to the inherently higher risk profile of their borrowers and the bespoke nature of their deals.

For Jason, a positive economic environment and increased competition among lenders has contributed to rising LTVs in the specialist finance market: “The gradual rise in LTVs — moving from 70–75% into the 80–85% range in some instances — is largely being driven by a combination of improving property market sentiment, strong borrower demand, and increasing competition among lenders eager to win business in a still relatively subdued market.

“Some lenders are also adapting to the persistent affordability challenge by offering higher leverage to well-qualified clients with robust exit strategies or security profiles.”

Jonathan thought that market conditions would come into play when it came to the future availability of higher LTVs, but warned brokers not to zero in too much on higher ratios: “Brokers should avoid focusing on LTV alone. Key factors such as interest rates, product features, for example access to dual representation, AVM’s etc, and the reliability of the lender in delivering on their commitments are often more critical to securing the right outcome.”

Still, for Jason, the trend of higher LTVs reflected cautious confidence more than recklessness, with lenders wary of “overheating” and continuing to apply forensic underwriting.

He felt the market was continuing to maintain risk controls while most higher LTV products were being aimed at experienced investors or developers with a clear track record.

Despite the perception of a stronger environment, Jason stressed a careful approach to high LTVs: “Rising LTVs may be a sign of a market regaining momentum, but I’d argue it’s not a free-for-all.

“Provided lenders maintain discipline around borrower assessment and exit viability, a slight easing of leverage could actually stimulate more transactions and support the recovery of property activity in 2025.”