Freedom welcomes Nemo’s move to 90pc

Nicola Georgiou, managing director at Freedom, said: “Brokers and borrowers have been feeling the pinch for some time as risk aversion has led to an extremely cautious lending criteria.

“However the decision by Nemo is significant as it is the first to move significantly on LTV since the credit crunch hit. Hopefully it illustrates that confidence is slowly returning and that secured homeowner lending is starting to head to recovery.”

Georgiou said that while responsible lending is always important there are “huge swathes” of the market that have not been well served in recent times.

She added: “The hope is that this will herald a brighter 2013 for borrowers looking to use their biggest asset to raise some capital.

“Ideally other lenders will be in a position to follow suit over the course of the year as a range of product options and wider choice creates a healthier market for all concerned.”