The number of borrowers with small deposits who are being approved for mortgages is slowly creeping up, according to the latest data from e.surv.
Statistics from the chartered surveyor’s Mortgage Monitor for June revealed first-time buyers were among the ‘main beneficiaries’ of the 66,435 loans approved during the month.
Indeed, first-timers and other buyers with small deposits took a greater share of the mortgage market than the previous month, being the recipients of 23.4% of home loans compared to 22.4% the previous month.
Figures for this section of the market have been slowly rising on an upward trajectory in recent months.
According to e.surv, Yorkshire was the top location for borrowers with small deposits. Here, 33.7% of all home loans were for customers in this sector.
And in the market overall, the number of buyers being given the thumbs up for a mortgage was 3% higher than in May which has built on the ‘stellar performance’ e.surv reported in the previous month.
Richard Sexton, director at e.surv, said: “While the housing market appears to have plateaued in some areas, there was good news for those looking to borrow to fund a house purchase.
“Mortgage approval rates are up both compared to last month and the same point a year ago, suggesting that lenders are offering deals which are tempting more borrowers to the market.”
Interest rates
In its report, e.surv also addressed speculation that the Bank of England might increase interest rates in August from the current base rate of 0.5%.
It said the central bank would consider a range of factors – including the potential impact a rate rise would have on mortgage borrowers – before the next meeting of its Monetary Policy Committee, which would make the decision.
Sexton added: “Speculation about a potential base rate rise in August may increase the interest, as more borrowers look to lock in a low mortgage rate before any increases take place.”
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