House purchase lending to borrowers with small deposits has hit a near-five year high, it has been predicted.
E.surv, part of the LSL Group, says that high loan-to-value lending is at its highest level since September 2008.
Based on its own activity records, the firm says that house purchase lending in June was 23% higher than last year, with a 47% rise in high LTV lending.
Most high LTV borrowers were first-time buyers last month, says the firm.
In June, it estimates that there were 13.975 loan approvals to buyers of property worth under £125,000 – 34% more than in June last year.
However, the overall number of mortgages did not change between May and June this year, at around 58,200 each month.
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Comments
Have you watched the latest Halitosis advert? It proclaims "We offer a First-Time Buyer a mortgage every three minutes".
So... dependent on what clock they are working on (5x 8-hour days or 7x 24...), that's either 41,600 or 175,200 offers per annum - or somewhere inbetween.
Whichever it is, the 'total' number of mortgages granted as quoted above indicates that an awful lot of FTBs don't take them up on their generous offer...