The latest UK housing market data indicates high loan to value mortgage lending has decreased year on year. This is in contrast to the amount of assistance the government’s Help to Buy scheme is increasing lending to those looking to gain access to the property ladder. This version of the property ladder is quite difficult to gain access to due to the amount of deposit required to purchase a house coupled with income levels which have struggled to keep pace with house prices and are consistently falling short.

More UK house hunters are coming up golden these days with the introduction of the government’s Help to Buy scheme. LTV mortgage lending of 95% increased almost 100% during the first 18 months to June of this year. However, this type of lending decreased year on year during the second quarter of this year.

To put the latest data in perspective, first time buyers hold almost £21 of every £100 loaned within the first half of Help to Buy. This speaks loudly to the number of house hunters the scheme has been able to assist.

The latest UK housing market data also suggests spotty growth of high LTV could place the long term health of this market is jeopardy. For the second consecutive quarter, both high LTV lending and first time buyer lending fell in value year on year. This is a first since the crisis from the end of 2010 to the third quarter of the following year.

Simon Crone of mortgage insurance Europe at Genworth, commented on the latest data, saying: “There is no denying that Help to Buy has played an important part in revitalising the first time buyer and high LTV mortgage market following a significant lending drought. Some participating lenders are now moving towards launching non-HTB2 products, but it remains to be seen whether this will be enough to sustain the benefits of the scheme once it expires.”