< p>As George Osborne announces that high LTV mortgages are vital to a growing economy, the Bank of England statistics reveal that lenders high LTV appetite is at its strongest in four years.

The Chancellor assured that 90-95 per cent Loan to Value ( LTV) mortgages are not “exotic weapons of financial mass destruction” but in fact “healthy”. Yesterday, figures from the Bank of England revealed that at 2.02 per cent, 90-95 per cent LTV mortgages are at their most frequent since early 2009. 

Also, average mortgage rates dipped to a record low in the second quarter of 2013 at 3.43 per cent. In the same quarter, the total value of new mortgages progressed increased by 23 per cent.

Ray Boulger, from John Charcol the independent mortgage adviser said: “It’s safe to say these are the lowest average rates we’ve ever had, partly because the Bank of England’s base rate is the lowest it has ever been.”

On Monday, George Osborne mentioned the economy’s need for 90-95 per cent LTV rates at his speech at a construction site in London.  He claimed that the lack of high LTV mortgage rates had been a large factor in stopping the government’s task of supplying new housing.

He went on to say the financial collapse was worse than expected and so inevitably the road to recovery is longer.  90-95 per cent LTV rates were dubbed as a crucial element to get Britain to reach sustainable economic improvement. 

On this topic, the Chancellor said:  “90 and 95% mortgages are not exotic weapons of financial mass destruction- they are a regular part of a healthy mortgage market and an aspirational society.“

Some sources claim it would be foolish to commit to large borrowing when Loan to Value rates are low.  Higher loan to value mortgages mean that borrowers are eligible for larger loans on their properties.

From this year’s first to second quarter, the 90-95 per cent Loan to Value rates has jumped by 0.4 per cent. The biggest jump the rate has made since the first quarter of 2012. However, the Chancellor has previously downplayed any predictions of an economic bubble.

The Bank of England figures represent data collated from around 300 of the UK’s mortgage lenders and administrators.

Osborne hoped the significance of his speech’s setting, a construction site where development was abandoned for around 4 years, would represent the struggles the British economy, just in case anyone needed reminding.