17% year-on-year house purchase lending increase

House purchase lending hit a sixteen month high in May thanks to an increase in high LTV lending.

The latest Mortgage Monitor from e.surv, the UK’s largest chartered surveyor, and part of LSL Property Services revealed there were 57,076 approvals in May.

With the exception of January 2012, May was the strongest month for house purchase lending since December 2009.

High LTV lending rose 26% from May last year up 7% from April this year.

Despite rising house prices, lenders have been more willing to lend to high LTV borrowers.

Richard Sexton, director of e.surv chartered surveyors, said: “Lenders are lowering the drawbridge for first-time buyers. They are much more willing to lend to borrowers with deposits of 15% or less, which is starting to clear the logjam in the housing market.

“Rates are lower, criteria are easing, and there is a wider choice of mortgages available.

"What was just a trickle of high LTV borrowers at the beginning of the year has picked up pace, and now there is a steady stream of them buyers entering the mortgage market.

“And total house purchase lending has followed suit, hailing a renewed and improved market.”

Today's Conveyancer