According to figures provided by the Council of Mortgage Lenders, the actual number of new lifetime mortgages rose last year, but the value of them fell. It claims that this decrease is due to the size in the actual loan dropping to around £41,000 in 2006 and its lowest point was £38,400.
This also indicates a trend for smaller loans, which suggests that lenders and intermediaries are being careful to arrange a loan for what people actually need.
Our view
This fall is linked to interest rate rises. If you borrow a sum and interest rates are higher, the debt will grow at a faster rate. This is why lenders are offering lower initial loan amounts.