High-LTV Mortgage Lending Hits Decade-Long High

The share of new mortgages advanced in Q2 with a loan to value (LTV) above 90% stood at 8.4%, marking the highest level since 2008, according to data from the Bank of England.

This represents an increase of 0.4 percentage points compared to the previous quarter and is also 1.4 percentage points higher than in the same period last year.

The proportion of gross mortgage advances above 95% LTV remained flat at 0.5%, while lending above 75% LTV reached its highest level since Q4 2007, accounting for 47.5% of all new lending.

Rachel Springall, a finance expert at Moneyfacts, attributed the increase in high-LTV lending to the growing importance of low-deposit borrowing in the housing market.