High loan-to-value borrowing could be reduced under Bank of England suggestions

High loan-to-value (LTV) mortgages could become rarer if the Bank of England introduces a cap on mortgage lending, making it difficult for first time buyers to get on the property ladder. Maximum LTV ratios could be imposed under a set of "direct constraints" on the mortgage sector, according to a recent speech made by the deputy governor of the Bank of England Charles Bean. The changes could penalise buyers with small deposits who are already struggling to obtain the finance they need in the current post-recession market.