ROYAL Bank of Scotland has become the latest lender to tighten up its criteria by pulling its 100 per cent loan-to-value (LTV) mortgage range, sold through external financial advisers. While 100 per cent mortgages will still be available through RBS’s branch network, people will not be able to apply for them through mortgage brokers. Since the credit crunch, most lenders have limited their maximum LTV – the proportion of the value of a property someone can borrow on a mortgage – to reduce the amount of risky lending they do.

A spokesperson for RBS said: “We regularly review our mortgage range against the market and, in the light of recent competitor moves, we are withdrawing our mortgages with a loan to value greater than 95 per cent.” John Postlethwaite, consultant with Punter Southall Financial Management, said: “With lenders withdrawing their 100 per cent LTV mortgages, it’s getting more difficult for first-time buyers.”It smacks of double standards for RBS to still have these 100 per cent mortgages through branches, but not intermediaries.” Earlier this week, Scottish Widows Bank reduced the LTV on its professional mortgage from 110 per cent to 100 per cent.