Study suggests steady rise in mortgage approvals

A new study suggests that mortgage approvals continue to rise, with the total number of loans approved in June 2017 up by 1.4 per cent year-on-year.

Research from property body e.surv found that as many as 65,887 new loans were approved last month, up from 64,645 in May – also suggesting a small month-on-month rise.

This contradicts separate research published by the Council of Mortgage Lenders (CML) in recent days, which suggested that mortgage approvals by high street banks had dipped slightly in June.

E.surv’s seasonally adjusted data suggests a steady rise in mortgage approvals over the course of recent months. However, the group’s report does reveal that the number of loans granted to homebuyers with small deposits – such as first-time buyers trying to get on the property ladder – has fallen by more than 1,500.

According to e.surv’s report, only 12,189 new loans were granted to small deposit buyers in June, down from 13,769 one month previous.

However, homebuyers with larger deposits (generally of 60 per cent or more) increased their share of the mortgage market last month, accounting for 34.5 per cent of all mortgages approved.

Richard Sexton, director at e.surv, said: “While the number of small deposit buyers being approved for mortgages has fallen, this should not be seen as a negative.

“As those properties up the ladder change hands this will free up those homes at the bottom of the market for first-time buyers in future months. This allows the cycle of growth to continue.”