Popular High LTV lending up 48pc
Last month borrowers took out 48% more loans with a deposit of less than 15% of the property value.
The average LTV was 62.7% in April 2014, compared to 60.5% in 2013 and 51.8% five years ago.
Richard Sexton, director of e.surv chartered surveyors, said: “Banks are lending much more to high LTV borrowers, and Help to Buy is enabling buyers struggling to put together a deposit to get on the ladder.
“Add to the mix the cocktail of economic good news – falling inflation, higher employment – and the picture is even more positive.
“But there is one thing holding back lending from returning to pre-recession levels. There is a lack of homes on the market, and a shortage of choice for prospective buyers.”
Help to Buy has driven demand, as in its opening year there has been just under 20,000 loans to home-owners using the equity loan part of the scheme.
First-time buyers appear to have profited, as there were 31,400 first-time buyer sales in March, the highest since August 2007, while the average first-time buyer deposit fell 10% in a year.
The April statistics reveal a disparity in high LTV lending regionally, as in the North of England a quarter of loans were to high LTV borrowers compared to just 5% in London.
Sexton added: “The North is home to many lower income borrowers getting onto the property ladder for the first time.
“Help to Buy is particularly needed in these regions, to help borrowers put together the deposit they need to make the first step onto the housing ladder.”