Just over a sixth of all house purchases in February were to those with a mortgage of 85 per cent or more - a major rise in so-called high loan-to-value' purchases, according to research by e.surv chartered surveyors.
In February there were 11,138 high LTV loans, some six per cent more than the 10,465 in January. This was despite a fall in the absolute number of home loans over the two months.
The February total was the highest monthly number of high LTV loans since April 2008 and the average LTV climbed to 63.5 per cent as a result - its highest level since August 2007.
It was the strongest February for house purchase lending since the financial crisis in 2007 but, on a monthly basis, house purchase approvals fell 7.2 per cent, thanks in part to the winter storms which deterred buyers.
There may also be some borrowers trying to beat the introduction of new regulations in April, which will mean much more rigorous stress testing' of those who apply for a mortgages. Some analysts suggest this will reduce the number of would-be buyers eligible for a mortgage.
Comments