Home purchase mortgages have seen a gradual decline over the past six months, e.surv says.
Compared to the first half of last year, there were 8.4 per cent fewer mortgage approvals, according to the latest Mortgage Monitor from the chartered surveyor. In total, there were 370,184 approvals from June to December 2014, compared to 404,058 in the preceding six months.
The MMR changes in April last year put the brakes on the gradual lending recovery, while the changes to stamp duty in December gave a boost to the market at year’s end.
December saw a monthly improvement of 2 per cent in home purchase approvals, continuing the monthly stabilisation in numbers that began in September. December was the first month with a rise in approvals though.
The December market was favourable to first-time buyers with approvals going up as well.
Richard Sexton, director of e.surv chartered surveyors, comments:
“First-time buyers are not the powerhouse they were earlier this year. Nevertheless, the reform of the Stamp Duty Land Tax in December is reflected in this monthly uptick for lower-LTV borrowers as inexpensive became cheaper.
“Meanwhile, at higher LTVs, first-time buyers are still receiving the help they need from Help-to-Buy in a way that doesn’t overheat the market. Amid all the policy implementations we’ve experienced in the past few years – both preventative and stimulating – annual figures need to be looked at with proper perspective.”
December lending to borrowers with deposits worth 15% or less of their property’s value grew by 5 per cent on the previous month. Loan approvals for higher LTV borrowers (typically first-time buyers) went up by 0.9 per cent compared to December 2013.
