High LTV lending reaches six-year high
In February, just over a sixth of all house purchase loans were to borrowers with a deposit worth 15% or less of the total value of their property.
Richard Sexton, director of e.surv chartered surveyors, said: “A bumper crop of high LTV deals is tempting more buyers back to the market.
“Banks are far more willing to lend to borrowers with a limited savings pot.”
There were 11,138 high LTV loans, 6% more than the 10,465 in January 2014, despite the overall number of home loans falling over the same period.
It was the highest monthly number of high LTV loans since April 2008, when numbers reached 12,489.
And the average LTV climbed to 63.5% as a result – its highest level since August 2007.
Sexton added: “New buyers are keen to get on the ladder before house prices rise beyond their reach, and they are utilising the Help to Buy Scheme to get an initial foothold.”