According to e.surv, properties under £125,000 accounted for 27% of all mortgage approvals in April compared to only 20% in April 2010 and a twelve month average of 23.8%.

The surveyor said that last year, wealthier buyers represented a disproportionate share of the market. However last month, 79% of all approvals were for homes under £250,000, or typically first-time buyer property, which was up from 71% in April 2010.

e.surv added that lenders are beginning to loosen criteria, which has helped more first-time buyers qualify for high LTVs. It reported that purchase volumes increased in the 85% to 90% LTV bracket at almost three times the pace of the rest of the market since last year.

LTVs were up across the market, reaching a three-year high of 61% in April. However, e.surv said that LTVs are increasing fast at the lowest end of the market, aiding first-time buyers.

The average LTV for properties under £125,000 in April was 68%, compared to 64% in April last year.

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Total mortgage approvals rose 1.8% in April, up from 47,577 in March to 48,435. This is the fourth consecutive month of growth as the market continued to slowly recover after a sluggish Christmas period. 

Richard Sexton, business development director of e.surv, said: “Lenders are looking to bring in new business after a remarkably sluggish winter period.

“They have tentatively offered high LTV products for some time, although their criteria have been so tight that only a few borrowers qualified. But this is slowly starting to change.”

He added that the steady increase of approvals since January, especially at the lower end of the property chain, suggests the mortgage market is slowly moving in the right direction.

“It will be a hard slog, but the portents bode well.”