House purchase approvals hit 65,142 in January, the biggest start to the year since 2007, as lenders prepare for a slowdown after the April MMR implementation date.

The number of loans in January was higher than the previous month for the first time in 12 years, research from e.surv found.

The market has also been stimulated by an increase in higher LTV loans since the launch of the government’s Help to Buy scheme with the average LTV for new lending climbing to 62.3%, the highest since August 2007.

The rise in high LTV lending was most keenly felt in northern England with 25% of all lending in the North East & Cumbria classed as high LTV along with 23% in the North West and 22% in Yorkshire.

By comparison just 6% of loans in London were to borrowers with deposits of 15% or less while the South and South Wales region reached just 10%.

Richard Sexton, director of e.surv chartered surveyors, said: “We normally witness a January slowdown in the mortgage market, in which borrowers choose to pay down Christmas debt rather than invest in property, but this year both banks and buyers have continued full steam ahead.

“Lenders are actively trying to keep volume high, to get business through the door before MMR puts a cap on the volumes they can process. First-time buyers are keen to lock into cheap deals and get on the ladder, especially with recent talk around a potential base-rate rise and the revision of forward guidance.”

The lending and borrowing surge comes at the same time as a two-year low in properties for sale across the UK, likely to put more pressure on the supply-side.