Mortgage lending hits five-year high Bob Pannell, chief economist at the Council of Mortgage Lenders, said: "Indicators suggest we are witnessing the strongest house purchase performance in five years. House prices too have revived but modestly, aside from a resurgent London market. Richard Sexton, director of e.surv chartered surveyors, said there has been a "quantum leap" in mortgage lending in the last 12 months. He said: "House purchase lending is at its highest for 68 months, and high loan-to-value lending is 60pc higher than this time last year. The whole market has moved out of the shadow of the financial crisis, and the sun is beginning to shine on borrowers again. Mortgage rates are likely to remain at rock-bottom for the next three years, lenders are more willing to advance high LTV loans, and Help to Buy will open the door to borrowers who are struggling to build a deposit. The second phase of the Government's Help to Buy scheme, which launched early this month but will not be fully operational until the new year, is expected to further fuel lending and house price rises. The mortgage guarantee scheme, which is designed to help first-time buyers and existing property owners move up the housing ladder, will allow borrowers with a 5pc deposit to buy property worth up to £600,000. It has set aside £12bn of guarantees for up to £130bn of mortgage lending and the scheme will remain open for three years to January 2017. Mr Pannell said: "It may be several months into 2014 before we get a true gauge of the scale and reach of Help to Buy. For now, the scheme has launched against an already recovering UK housing market with several quarters of improving credit availability, growing competition, and strengthening demand. Sign up to our newsletter for the best of our money advice, once a week.