Lending to high LTV borrowers hit a six year high in February 2014 as the number of loans during the month reached 11,138 according to e.surv chartered surveyors.

The number of loans was 6% higher than the 10,465 recorded in January 2014, with a sixth of all house purchase loans in February 2014 to borrowers with a deposit worth 15% or less of the total value of their property.

Richard Sexton, director of e.surv, said: “A bumper crop of high LTV deals is tempting more buyers back to the market. Banks are far more willing to lend to borrowers with a limited savings pot. New buyers are keen to get on the ladder before house prices rise beyond their reach, and they are utilising the Help to Buy Scheme to get an initial foothold. The result, the number of monthly home loans is slowly winding its way back into pre-recession territory.

“The countdown to the introduction of MMR regulations has begun. The new rules will demand rigorous stress testing of buyers, which could further tighter regulation, and could make it more difficult to get on the ladder. We are seeing both banks and buyers pushing ahead with lending ahead of this cut-off.”

The average LTV climbed to 63.5%, its highest level since August 2007. The monthly number of high LTV loans was also the highest since April 2008 when there were 12,489 loans.

House purchase lending rose 37% year-on-year in February 2014, up to 71,396 approvals, resulting in the strongest February for house purchase lending since the financial crisis began in 2007. However, on a monthly basis, the number of house purchase approvals fell 7.2% from 76,947 in January 2014.