High loan to value lending increases

High loan to value lending has increased in line with hightened first-time buyer activity, Bank of England statistics have revealed.

In the second quarter of the year 4.6% of loans issued for purchase or remortgage were over 90% LTV, up from 3.6% in the first quarter of 2014 and 2.1% in the final quarter of 2013.

Home purchase lending to first-time buyers accounted for 22.1% of loan advances in Q2, up from 20.1% in Q1, while loan values increased from £9.4bn to £11.4bn from Q1 to Q2.