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Mid-tier is squeezed as 85 per cent LTV approvals rise in October – E.surv

  • 14/11/2019
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Mid-tier is squeezed as 85 per cent LTV approvals rise in October – E.surv
The chartered surveyor E.surv recorded 65,922 residential mortgage approvals in October, down by 1.2 per cent compared to the same month last year.


Borrowers with deposits of 15 per cent or less accounted for 29.2 per cent of approvals, or 19,249.

The number of small-deposit borrowers was up from 28.7 per cent in September and 28.3 per cent in August. 


Mid-market squeeze 

The number of approvals for mortgages at 60 per cent loan to value — borrowers having large deposits of 40 per cent or more – also rose, to 28.8 per cent in October, against 27.9 per cent in September.   

However, the mid-market was squeezed. Approvals in the 60 per cent to 85 per cent tiers took 42.9 per cent of the market, down from 45.1 per cent in August.


Yorkshire top for small deposits  

Yorkshire saw the highest proportion of mortgage approvals for small-deposit borrowers in October, at 36.6 per cent.   

This put the region ahead of the North West where 33.3 per cent of approvals were on smaller deposits.   

The Midlands recorded 32.5 per cent and Northern Ireland 32 per cent.


More capital needed for Londoners   

Just 20.7 per cent of loans in the capital went to those with small deposits while, 35.5 per cent went to borrowers with larger deposits.    

Close behind was the South East, where 34.4 per cent of all mortgages went to those with big deposits, versus 25.7 per cent for small deposits.   


Slowdown offset by competitive rates 

Richard Sexton (pictured), director at E.surv, said: “Despite the wider property market continuing its recent slowdown, the mortgage industry has maintained steady levels of activity this month.  

“Competitive mortgage rates have ensured the entry of new borrowers into the market and meant that the industry has kept some semblance of momentum.” 

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