"Single-income borrowers with an LTI ratio above 4 actually rose slightly, which could be a cause for concern."
Additionally, the proportion of lending to borrowers with a high loan to income ratio fell by 0.6pp on the quarter to 46.6%.
Overall, the value of gross mortgage advances was £73.4 billion, broadly unchanged in comparison to 2018 Q4.
However, the value of new mortgage commitments was 4.0% higher than a year earlier, at £70.6 billion.
As lender mortgage rates remain competitive, the share of gross advances with interest rates less than 2% above Bank Rate was 85.3%, a 1.4 percentage point increase in comparison to a year ago to the highest share seen since Q3 2008.
Mark Pilling, Spicerhaart Corporate Sales managing director, said: "There was a small drop in high LTV mortgages and high loan-to-income (LTI) ratios – although single-income borrowers with an LTI ratio above 4 actually rose slightly, which could be a cause for concern.
“With the coronavirus Covid-19 already beginning to cause real disruption to businesses and people’s livelihoods, it remains important that lenders have a flexible attitude and continue to seek outcomes that are right for customers. There is a strong likelihood that arrears will rise as a result of the virus, and the measures imposed to slow down its spread. Lenders need to be ready for a situation where people are facing real financial difficulties through no fault of their own.”
