Activity in the UK mortgage market continues to remain strong with first-time buyers and existing home-owners taking new loans in April and May 2019. House price growth has stabilised, encouraging prospective buyers to explore options.
The latest Mortgage Monitor from e.surv, the UK’s largest residential chartered surveyors, found that 65,801 residential mortgages were approved during May 2019, up by 1.2 per cent when compared to the corresponding month last year.
Existing home-owners, as well as first-time buyers, are taking advantage of the competitive deals being offered by mortgage lenders, according to e.surv. “This figure is well ahead of the 26% recorded in March and demonstrates the strong performance of the first-time buyer market, even when others are holding off on making purchases,” e.surv report said.
The proportion of mortgage approvals to borrowers with a small deposit dropped slightly in May. Large deposit borrowers felt the benefit somewhat, but it was the mid-market which saw the greatest increase in activity. This meant it was mid-market borrowers, who increased their share of the market most substantially, growing from 47.2 per cent to 47.8 per cent month-on-month.
London accounted for the highest proportion of large deposit lending in May 2019 at 32.8 per cent followed by South East at 27.9 per cent. The share of large deposit lending in Eastern England and Midlands was 26 per cent and 22.1 per cent respectively.
Richard Sexton, Director at e.surv, comments: “The doom and gloom in the property market seems a mile away from the positive stories coming out of the mortgage market. As for existing homeowners, they are being tempted into the market by near record low interest rates. Those looking to switch could save hundreds of pounds a month by moving to a cheaper deal from a rival lender.”