"More first-time buyers are purchasing homes, latest figures suggest, with 27% of all mortgage approvals in April being for properties costing less than £125,000.

"The figure is 7% higher than the same month in 2010, and 79% of all approvals were for properties costing less than £250,000, up from 71% in April 2010, according to e.surv, a firm responsible for 40% of house valuations in the UK.

"It says the data shows that lenders are beginning to offer higher loan-to-value (LTV) ratio mortgages, with the average LTV for properties under £125,000 standing at 68% in April, compared to 64% for the same month in 2010. Purchase volumes increased in the 85%-90% LTV bracket at almost three times the pace of the rest of the market."

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