The UK mortgage market remained stable between May and June 2019, registering a modest increase in the number of approvals month-on-month.
According to the latest Mortgage Monitor from e.surv, the UK’s largest residential chartered surveyors, the market was buoyed by strong activity among first-time buyers and those with smaller deposits, with the proportion of loans going to these types of borrowers increasing month-on-month.
There were 65,823 residential mortgages approved in June 2019, up 0.6 per cent over May 2019. Borrowers with large deposits continued to grow their market share in June, as the number of mortgage approvals increased. Some 24.7 per cent of all loans went to these customers this month. This is higher than the 24.5 per cent recorded in May and further ahead of the 24.3 per cent seen in April.
There was a similar rise in the number of small deposit borrowers in June. These buyers saw their market share increase from 27.7 per cent to 27.9 per cent, also a 0.2 percentage point increase. These changes meant that the mid-market was squeezed this month, the proportion of loans to this market segment dropping from 42.8 per cent to 42.4 per cent. On an absolute basis, the number of small deposit borrowers grew to 18,365 in June, rising from May’s figure of 18,227.
London continues to dominate with large deposit borrowers with 33 per cent of all borrowers from this category.
Richard Sexton, Director at e.surv, comments: “We have seen an increase in the number of both small and large deposit borrowers this month. This is likely a result of more first-time buyers getting on the ladder and also existing homeowners with lots of equity choosing to remortgage.”