e.surv – Mortgage approvals up 1.5% in July
e.surv’s monthly Mortgage Monitor shows that, seasonally adjusted, mortgage approval figures grew 1.5 per cent in July, at 66,590 approvals.
The report also shows that large deposit borrowers (those who are able to put down a deposit of 60 per cent or more) made up 33.8 per cent of the market as compared to 32.9 per cent in June. Conversely, small deposit borrowers dropped from 23.4 per cent to 22.1 per cent within the same time frame, leaving the proportion of mid-market borrowers broadly flat.
London is where most of the large deposit action is, with 42.1 per cent of mortgage loans taken out were of this type – the highest in the country. Just 11.4 per cent of loans taken out were classed as small deposit lending.
The report points out that first-time buyers have better luck securing a property elsewhere. In Northern Ireland, 32.3 per cent of mortgages were small deposits, followed by Yorkshire, at 32.1 per cent, and in third, the North West, at 30.9 per cent.
e.surv director Richard Sexton says: “It is often thought that good weather causes a slowdown in the UK housing market, as would-be home buyers prefer to spend their time enjoying the sun.
“That thesis has been disproved this month, as the number of mortgage approvals increased month-on-month, despite the scorching weather across most of the UK.
“Looking ahead to future months, the decision to increase the base rate to the highest level since February 2009 will be of interest across the market.
“Many homeowners will look to remortgage immediately while others are likely to take action in September when they receive their new, higher bills.”
Source: Mortgage Strategy