E.surv has reported that the stable performance of the UK mortgage market during May continued into June, with buyers across the country achieving home ownership in increasing numbers.
The latest Mortgage Monitor from e.surv, the UK’s largest residential chartered surveyors, found that there were 66,435 mortgages approved in the month (seasonally adjusted).
This is 3% higher than in May, and builds on the growth seen a month ago.
First-time buyers continued to be among the main beneficiaries, with these and other buyers with small deposits taking a greater share of the overall mortgage market than a month ago.
The Mortgage Monitor found that 23.4% of the total UK mortgage market went to this type of borrower during June.
This is higher than the 22.4% recorded in May and continues a recent trajectory which has seen small deposit borrowers increase their share of the market.
Regional disparities continued this month, with would-be buyers in different areas of the country having to contend with wildly different housing markets.
Yorkshire was the top location for small deposit borrowers, with 33.7% of all loans going to these customers. In London this figure was just 16.2%.
The Bank of England chose to keep the base rate at 0.5% in June, although speculation is increasing about a potential rise in August.
The central bank will consider a range of factors before the next meeting of its Monetary Policy Committee, including the potential impact on mortgage borrowers a rise in interest rates would have on mortgage borrowers.
Richard Sexton, director at e.surv, said: “While the housing market appears to have plateaued insome 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.
“Speculation about a potential base rate rise in August may increase interest, as more borrowers look to lock ina low mortgage rate before any increases take place.”
