You are here: Home - News -

Mortgage approvals recovering from Brexit effect: e.surv

by:
  • 21/12/2016
  • 0
Mortgage approvals recovering from Brexit effect: e.surv
The latest Mortgage Monitor from e.surv has revealed that mortgage approvals rose 1.3% between October and November, the first significant growth since the EU Referendum in June.

Following the Brexit vote, approvals fell dramatically, but after a couple of months of stability, are now on the rise again.

In total, 64,407 mortgages for purchase were approved in November. While this was up from the 62,522 recorded in October, it is still some way down on 70,511 recorded in November last year and significantly below 2016’s peak of 72,512 approvals in February.

Richard Sexton, director of e.surv chartered surveyors, said that the “post-Brexit doom and gloom” in the market had now passed.

He added: “While activity is still down on previous years, the market is in a stable place, with record low mortgage rates continuing to lure buyers into the market.”

The importance of a large deposit

The report highlighted that borrowers with large deposits continue to drive the market, with more than 36% of loans going to borrowers with deposits of 60% or more.

In contrast first-time buyers and those with small deposits (defined as those with a deposit of 15% or less) made up just 16.3% of the overall market.

Sexton said that a shrinking first-time buyer market was a cause for concern, but suggested that after a period of lower-than-usual approvals, it could be a lagging effect.

“People at the top of the ladder must move first to free up properties for everyone else to move into. It is hoped that first-time buyer growth will resume as we head into 2017,” he continued.

The best regions for small-deposit borrowers

Northern Ireland was the best region for borrowers with smaller deposits, with 31.6% of all loans in the region going to these borrowers in November, followed by Yorkshire and the North West at 26% and 25.7% respectively.

At the other end of the scale, it was toughest for borrowers in Scotland if they only had a small deposit – just 11.8% of mortgages went to borrowers in this sector in November, even lower than London at 13.6%.

 

There are 0 Comment(s)

You may also be interested in

Business Skills

In this section, we offer short ‘how to’ guides on harder to crack areas of business. From social media, to regulation or niche product areas, we cover it all.

Profiles

Our journalists interview key industry entrepreneurs, strategists and commentators for day-to-day market insight and a strategic view of where the industry is heading. We offer lessons for success and explore the opportunities for your business

Success in Practice

Here, we share case studies fleshing out best practice to help you decide what could work for your business. Take a look at how others approached complex tasks like launching a new mortgage lender, advising on a new product area or deciding to specialise in another. Learn from others mistakes and triumphs.

Marketwatch

Each week, we ask top mortgage and property commentators with a unique perspective to examine a key news headline, market move or regulatory or political issue.

Poll

Vote in our weekly poll here. It’s your chance to tell us what you think and be heard on the top news stories of the week. Review our archive to find out what your industry really thinks and all our coverage of the results.

Top Comments

Be part of the conversation on Mortgage Solutions. We want to hear from you. We have a tool called Disqus to tell us which stories get the most comments each week. Every Friday, the team picks the most thoughtful or opinionated contributions from our readers to enjoy again. Don’t forget to share your favourite stories from the site on social media to keep the conversation going.
Read previous post:
Residential transactions reflect mixed sentiment – HMRC

There have been more residential transactions in 2016 so far than the same period last year, but the prospect for...

Close