High loan to value (LTV) lending upturn

High loan to value lending formed the largest proportion of lending for 12 months, figures from the e.surv Mortgage Monitor show.

Lending to borrowers with a deposit of 15% or less increased to 12.3%, or one in eight loans, the highest proportion since January 2012.

Richard Sexton, business development director of e.surv, said: “High loan to value lending increased as a proportion of overall lending in February, and now accounts for one in eight loans compared to just one in 11 during most of 2011 suggesting the availability of mortgages for first-time buyers is actually improving.”

The average loan to value rose to its highest level since January 2012 at 61.3% after consistently tracking below 60% for most of last year.

Peter Lawrence at Lawrence Rand said: “Whilst the Government’s Funding for Lending has received mixed reviews there has definitely been a slight easing of the mortgage market in 2013 with a greater range of attractive mortgage products available.

This bodes well for those looking to buy and our mortgage advisers will be only too pleased to discuss individual circumstances in confidence with you.”