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Sharp jump in approvals in May – E.surv

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  • 13/06/2018
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Sharp jump in approvals in May – E.surv
The latest mortgage monitor from chartered surveyors E.surv has suggested the mortgage market enjoyed “substantial growth” between April and May, with a sharp jump in approvals.

The firm’s study found that on a seasonally adjusted basis a total of 66,479 mortgages were approved in May, up by 6.4% from April. This also represented a 0.5% year-on-year increase.

The growth was in part down to the improving fortunes of first-time buyers and those with small deposits, who saw their share of the market jump from 20.2% in April to 22.4%.

In total, the firm found that 14,891 loans were handed to small deposit buyers, up from 13,429 in April.

 

Huge variations

There remain huge regional variations however. While small deposit borrowers represent around a third of the market in Northern Ireland (35.7%), Yorkshire (32.6%) and the north west (32.1%), they have a much tougher time in London (13.8%) and the south east (18.9%).

Richard Sexton (pictured), director at E.surv, said this was the second straight month of seeing a sizeable rise in the number of mortgages handed to small deposit borrowers, suggesting now is a good time for them to get onto the housing ladder.

Sexton also noted that the expectation of a base rate rise, which did not eventually come to pass, also played a part in boosting overall activity levels.

He said: “Mortgages are at the forefront of the national conversation, with many people assessing their options and looking to fix in this rising interest rate environment. While the base rate may have stayed at 0.5% in May, speculation continues about the next increase, which appears to be coming sooner rather than later.”

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