Borrowers starting to creep back: e.surv

Richard Sexton, director of e.surv, said this is the highest level since December 2009, and was due to an increase in lending to borrowers with small deposits.

The figure represents an 11 per cent increase on the 52,939 purchase approvals in December, and a 29 per cent year-on-year increase from January 2011.

Mr Sexton said: “The mortgage market has so far done a reasonable job in repelling the onslaught from the eurozone. Loan to values have trended steadily upwards over the past six months, and approvals volumes are holding up well.”

The data found the sharp increase has been driven by more loans to borrowers with small deposits, with more first-time buyers being given access to high LTV mortgages by lenders.

Since January 2011, high LTV lending has almost doubled.

Loans to borrowers with a deposit of under 15 per cent accounted for only 7 per cent of all loans for house purchase back in January last year, but have risen to account for almost 13 per cent.

This has helped more low income and FTBs get onto the property ladder, with the number of loans to these borrowers increasing at a faster pace than loans to wealthier borrowers.

There were 15,329 loans for homes costing below £125,000 – which is typical FTB property. This was the highest number since March 2008, and marked a 31 per cent increase from January last year.