Credit conditions in the UK mortgage market eased out for the first time in November, ahead of the General Election, according to research conducted by chartered surveyor firm e.surv, which is part of the LSL property group.
New figures show that the number of mortgage approvals in the UK rose to 48,846 in November from 47,185 in October. While the volumes were still 17.5 percent lower compared to November last year, the loan-to-value (LTV) ratio increased one percentage point during the month, to 57.7 percent, making it the first increase since June and bringing LTVs up from 53 percent from November 2009.
Although LTVs grew in all the market segments, higher-value properties recorded the best of the loosening in lending constraints.
“Lenders are still more comfortable focusing on wealthier borrowers and are prepared to expand loan-to-value ratios more for these groups than the average, but there was also an unusually large improvement in credit conditions for the lowest value borrowers too,” said Richard Sexton, business development director at e.surv.
“Such a strong month will be hard to beat from here, but tales of the renewed demise of the market are hard to reconcile with this sort of strength,” he said.