Bridging finance firm, Cheval is pleased to announce that with immediate effect, its maximum LTV has been increased to 70%.

Managing director, Alan Margolis has said that the decision arose from a number of factors – including empirical evidence that the group's refocus on getting to know its customers better was paying dividends by way of safer loans; the easing of the decline in property prices and that, notwithstanding the general difficulties in the mortgage market, refinance products are available.

National sales manager, Gareth Lewis commented: “At Cheval, we are constantly reviewing all aspects of the lending environment and have judged that the time is now right to offer 70% LTV loans to those customers who can evidence affordability and where the security property is a family house – property for which we believe there is pent up demand.”

Mr Lewis went on to say: “As a responsible short term lender, Cheval continues to focus on the ‘take out’ - i.e. how the loan will be repaid. This focus hasn't changed, and we acknowledge that the general poor state of the housing market makes the sale of a property more problematic.

“However, where the client has the ability to refinance their Cheval loan, or where there is a sensible disposal strategy for a property which we and our customer believes will sell, then a 70% LTV can work for all concerned.”