Resi approvals up in September

Michael Lloyd

October 17, 2019

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The number of the residential mortgages approved during September rose by 0.7% from August, e.surv’s Mortgage Monitor has found.

There were 65,997 residential mortgages approved, 0.6% more than the year before.

Richard Sexton, director at e.surv, said: “As we leave a somewhat slow summer for the housing market and enter autumn, approvals have, perhaps predictably, picked up slightly.

“While the supply of new housing stock entering the market remains limited, small increases to affordability have combined with competitive price offerings from lenders to entice some buyers to market.

“The current activity levels in the housing market have certainly played a part in incentivising lenders to price their offerings more keenly than ever, in some cases.”

Large deposit borrowers grew their market share from 27.7% to 27.9% between August and September.

Low mortgage rates and a raft of government housing schemes have helped more small deposit borrowers onto the ladder last month.

The proportion of loans to first-time buyers and others with small deposits increased from 28.3% in August to 28.7% in September.

In addition, remortgage activity has contributed to the increase in the proportion of loans to those with large deposits with the size of this market rising month-on-month from 26.6% to 27.9%.

Sexton added: “Low mortgage rates have had the twin benefits of helping borrowers at both ends of the deposit-size spectrum this month.

“Both small and large deposit borrowers will be glad to see these cheap deals continue for the rest of the year.”

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