Following a strong month in April, the mortgage market continued to show signs of growth in May as more and more buyers were approved for loans on property purchases.
According to a recent report by e.surv, 65,801 residential mortgages were approved in May 2019. This is up from mortgage approvals in April and a 1.2% growth in year-on-year comparison to May 2018.
The mid-market borrowers (individuals purchasing a property between £200,000 and £400,000) saw the biggest proportional increase, with 47.8% of all mortgage approvals going to this group. Borrowers in this price bracket have traditionally been favored by mortgage lenders as it is mostly made up of existing property owners looking for their next property or individuals purchasing a second property. The larger loan amount and evidence of regular mortgage repayments make this market segment eligible for better mortgage agreements and better repayment terms due to their proven property ownership track record.
e.surv’s report also states that this market growth is attributable to mortgage lenders offering increasingly competitive deals to persuade buyers. Despite concerns in the market of a potential slowdown, regional hotspots continue to drive property purchases and mortgage approvals due to their continued growth.
Richard Sexton, Director at e.surv, commented on the results of the report:
“While few people are moving when they don’t have to, first-time buyers are still desperate to get onto the ladder.
“As for existing homeowners, they are being tempted into the market by near record-low interest rates.”
“The North West and the Midlands have also proven strong places to get onto the ladder for the first time, with 30% of all loans going to this part of the market.
“Once again it is those looking to make a purchase in London and the South East that will need to have the most cash as a deposit.”
With a number of residential property developments across the UK, the team here at Alliance Investments are able to offer a full end-to-end service when it comes to purchasing your property. Our full service offering includes:
To find out more about our current residential properties, our service offering or to find out more about mortgage advice and assistance, get in touch with a member of our team today.