Mortgage approvals up 2.7 per cent in August
Approximately 66,543 mortgages were approved last month – a 2.7 per cent rise on the number of new loans approved in July, new research reveals.
According to e.surv’s latest Mortgage Monitor, almost a quarter (22.8 per cent) of loans went to buyers with small deposits, up from 22.1 per cent the previous month.
This indicates that first-time buyers are increasingly realising their home-owning dreams, commentators said, thanks in part to helpful Government schemes such as Help to Buy.
Richard Sexton, Director at e.surv, said that many homebuyers were “racing to re-mortgage” or “seal competitive deals” after the Bank of England moved to increase its base rate at the beginning of the month.
“Strong activity should continue into September and October as homeowners receive their new, higher mortgage bills and look to switch,” he added, suggesting that the market was unlikely to slow down going into the autumn.
“There was a small shift toward small deposit borrowers this month, but the number of large deposit borrowers continued to outstrip this market segment,” he said.
“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.”
According to e.surv’s report, despite being up by 2.7 per cent on a monthly basis, mortgage approvals were still down slightly year-on-year last month.