e-surv – Mortgage approvals rise in August
New figures from e.surv show that, with 66,543 mortgages approved in August, seasonally adjusted, approvals rose 2.7 per cent on a monthly basis, down 0.7 per cent annually.
The report also shows that, in contrast to last month, large deposit borrowers (people with a deposit of 60 per cent or more) fell from making up 33.8 per cent of the market to 32.5 per cent, while the proportion of small deposit borrowers grew from 22.1 per cent to 22.8 per cent.
London once again dominated the large deposit table: last month, 42.1 per cent of mortgage loans taken out were of this type. In August this figure dropped to 41.5 per cent.
Yorkshire housed the most small deposit borrowers, with 30.9 per cent of approvals going to those more likely to be first-time buyers. Meanwhile, large deposit borrowers made up 23.9 per cent of that market. In London, the proportion of small deposit borrowers stood at a paltry 12.1 per cent.
e.surv director Richard Sexton says: “There was a small shift toward small deposit borrowers this month, but the number of large deposit borrowers continued to outstrip this market segment.
“All types of borrowers, regardless of deposit size, are being tempted into the market by historically low mortgage rates and favourable criteria at mortgage lenders.”
Overall, e.surv predicts that activity will remain high in the autumn months when, as a result of the rate rise in early August, homeowners, “receive their new, higher mortgage bills and look to switch.”
Furthermore, Sexton says that, “even in the capital, prices are declining gently following a prolonged period of rises, meaning salaries can play catch up and borrowers can find their ideal home.”
Source: Mortgage Strategy