Loan-to-value rates are at a two year low according to recent research.

Figures from the financial website moneyextra.com have shown that banks are still being particularly prudent with regards to their lending criteria; a move which could lead to further low prices in the UK.

The research shows that in the first quarter of 2009, the average loan-to-value rate for first-time buyers was just 71.1 per cent. For those hoping to remortgage, that figure reached just 68.8 per cent.

Such low lending figures are likely to put further pressure on homeowners attempting to sell their property, as with buyers unable to secure a mortgage it is unlikely that the number of property transactions will rise in the near future.

A statement from moneyextra.com pointed to a slight rise in mortgage loan rates, but avoided the suggestion that such a rise may be the beginning of the end.

"At the beginning of March the Moneyextra.com housing index shows all mortgage lending was at a two year low but by the end of the month there was a 13 per cent increase," it said.

"Whilst it is positive to see lending figures slightly increase, the rise might not last."

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