Mortgage market in the UK was stable in June with lending up to first time buyers
The stable performance of the UK mortgage market during May continued into June, with approved mortgages up by 3%, led by lending to first time buyers, the latest research shows.
Some 23.4% of the total UK mortgage market went to those with small deposits, typically first time buyers, according to the data from the mortgage monitor report from national chartered surveyors e.surv, up from 22.4% in May.
But there are regional disparities with Yorkshire emerging as the top location for small deposit borrowers, with 33.7% of all loans going to these customers. The North West recorded 32.1% and Northern Ireland 28.1%. In London this figure was just 16.2%.
‘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,’ said Richard Sexton, e.surv director.
The data also shows that the proportion of large deposit borrowers, defined as having a deposit of 60% or more, increased marginally between May and June to 32.9% from 32.8%.
However, mid-market borrowers saw their share of the market squeezed during June. These customers saw their overall share of the market fall from 44.8% to 43.7% and down from 46.6% in April.
Northern Ireland displaced London as the part of the UK with the highest proportion of buyers with large deposits. In this region 39.8% of all approvals were to borrowers of this kind, ahead of London at 38.5% and the South East at 38%.
Sexton pointed out that parts of London and the South East continue to be dominated by cash buyers and those with large deposits yet the opposite is true in areas of northern England, where there are better opportunities for those with small deposits to get onto the property ladder.