Scott Hanton, mortgage analyst at moneyfacts.co.uk, said: "Hardly a day goes by without mention of the growing UK personal debt burden. Total secured lending now tops £1 trillion, with the average household debt at £8,5771 or £50,0911 if you include mortgages.
"Particularly in the mortgage arena, Moneyfacts researchers have seen lenders relaxing their lending criteria to accommodate the growing need for larger loans. Income multiples have reached an all time high, increasing number of borrowers are opting for interest only mortgages and repayment terms in excess of 30 years are now commonplace. But most recently we have witnessed an increase in LTV limits, meaning that more mortgage products requiring a smaller deposit from the customer are now available.
"During September seven mortgage lenders have increased LTVs, some on selected products, with others raising the minimum LTV limit on their entire product ranges by as much as 10 per cent."
