The share of mortgages exceeding 90% LTV has risen to its highest point since Q4 2008, the Bank of England’s Q3 Mortgage Lenders and Administrators Statistics has shown.
The share of 90% LTV and above mortgages advanced in Q3 to 5.9%.
Kevin Roberts, director at Legal & General Mortgage Club, said: “It’s clearly been business as usual for the mortgage market.
“Despite the political indecision, people across the country are still going ahead with their plans to remortgage, buy their first home or move up the ladder.
“There are some fantastic deals available to borrowers and thousands are taking advantage of a competitive market and record-low rates to make their housing ambitions a reality.
“Amidst the uncertainty and competition, many of these borrowers are drawing on the expertise of a mortgage adviser to help them navigate the market and find the best deal for their needs.
“In fact, 95% of consumers who used an adviser to find their mortgage would recommend their family or friends do the same.”
The outstanding value of all residential mortgage loans was £1,486bn in Q3, 3.9% higher than a year earlier.
The value of gross mortgage advances was £73.3bn, broadly unchanged in comparison to 2018 Q3.
The value of new mortgage commitments was 1.1% higher than a year earlier.
The share of gross mortgage lending for buy-to-let purposes covering house purchase, remortgage and further advance remained steady at 12.3%.
In addition the value of outstanding balances with arrears fell significantly to £13.7bn, and now accounts for 0.92% of outstanding mortgage balances.
Mark Pilling, managing director at Spicerhaart Corporate Sales, added: “The Q3 arrears figures from Bank of England are encouraging, especially given the current political situation.
“It just shows that no matter what is going on in Westminster people are looking after their own affairs and trying to stay on top of things.
“The trend for higher loan to value mortgages is always a concern, as we head into uncharted waters next year.
“There is no way, at the moment, to predict what will happen in the economy when, and if, Brexit is completed and there is a real risk that interest rates will rise.
“With this in mind, it is more important than ever for lenders to ensure long term affordability.
“We do not want to find ourselves back in a situation where repossessions begin to rise and people lose their homes.”