Landlords could be affected by better mortgage conditions in 2010 after it was announced that flexibility will return to the market.

Mortgageforce claimed that loans-to-value (LTV) will continue to improve next year, with more affordable 90 per cent deals becoming available.

Predictions follow reports of a ten per cent drop in mortgage lending in November by the Council of Mortgage Lenders.

The decrease was a little larger than normally expected for the season, it noted.

Katie Tucker, technical manager at mortgageforce, said: "The lenders will return to competing with each other. As a result of that, they will be more flexible with their credit scoring and underwriting again."

This is in contrast to attitudes in 2009, when legitimate borrowers were refused loans thanks to over cautious lenders, Ms Tucker added.

On December 23rd the British Bankers' Association noted that the value of house purchase loans approved that month was £6.6 billion.

A rise of 208.7 per cent since the previous year was reported.

Written by John WeeksADNFCR-2002-ID-19533639-ADNFCR

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