The average LTV on purchase mortgages fell from a six-month high of 71.1% in July to 70.2% in August, while the average loan size for purchases dropped 7.3% from £139,404 in July to £129,270 in August, according to the August 2010 National Mortgage Index – compiled by Mortgage Advice Bureau and Coreco Group.
Average LTVs on remortgages rose from 55.6% in July to 56.9% in August, although average remortgage loan size fell 6.5% in the same period, from £143,821 to £134,416.
Regionally, the average LTV on purchases arranged in August was highest in Wales (81.2%) and lowest in the South West (67.8%).
August saw 41.5% of applicants choosing a variable rate mortgage (purchases and remortgages), compared to 38.8% in July.
The average age of a UK mortgage applicant in August was 37 years, with the oldest applicants in East Anglia (43 years) and the youngest in Yorkshire & Humber (34 years).
Brian Murphy, head of lending, at Mortgage Advice Bureau, said: “We should have a much clearer picture as to how the mortgage market is likely to perform for the rest of the year once the Coalition Government announces its spending review next month