Higher LTV lending supporting the wider mortgage market in April
- April sees over 10,000 house purchase approvals to higher LTV borrowers, up 7.3% year-on-year
- Lending to borrowers with small deposits represents 16.3% of house purchase approvals in April, up 1.4 percentage points from 14.9% a year ago
- Small deposit borrowing concentrated in Yorkshire and North West – a quarter of all loans in Yorkshire were higher LTV
Loans to borrowers with small deposits saw a year-on-year increase in April, according to the latest Mortgage Monitor from e.surv, the UK’s largest chartered surveyor.
In April there were 10,112 house purchase loan approvals for borrowers with deposits worth 15% or less of their property’s total value – typically first-time buyers.
This is 7.3% more than April last year, when there were 9,422 approvals, and 6.4% more than the 9,508 borrowers seen in March.
However, the number of house purchase approvals fell year-on-year, suggesting that higher LTV lending is helping to support total mortgage approval figures.
In the total market, there were 1.9% fewer approvals for house purchase loans in April than there were last year: 62,035 loans, down from 63,236 in April 2014.