LTVs are at their highest for three years, with the average loan breaking the 60% barrier for the first time since April 2008, according to e.surv’s latest Mortgage Monitor.

It has reported that mortgage approvals rose sharply by 4.3% in March, rising from 46,967 in February to 48,979. This is the third consecutive month of growth as the market recovers from a sluggish Christmas period.

The year-on-year decline slowed to 0.6% compared to March 2010, the slowest year-on-year decline since it began falling in May 2010.

Purchase volumes increased markedly in the cheapest house price brackets, indicating that more first time buyers are getting a foot on the property ladder, e.surv said, with properties up to £125,000 accounting for a third of all approvals.

The average loan-to-value mortgage is now 60.8%, a sixth consecutive monthly increase, and is up from 56.2% in March 2010. The volume of high LTV mortgages has increased, with the proportion of approvals in the higher LTV bands significantly higher than October 2010.

Volumes increased in the 75% to 85% LTV bracket by twice the pace of the overall market since October last year, while the 85% to 90% bracket has grown by a third faster.

Richard Sexton, business development director of e.surv said: “More people are getting higher LTV mortgage loans