First-time buyers increase market share as rates fall: e.surv

Low rates are helping the mortgage market fight back against a stagnant housing sector in October, according to the latest e.surv research.

Related topics:  Mortgages
Rozi Jones
14th November 2019
House sale sold
"Rates, which have fallen to a little over 1% for the cheapest two-year fixes, have helped sustain activity."

The number of mortgage approvals held steady on September's figure at 65,922 and are 1.2% higher than in October 2018.

29.2% of all loans were to borrowers with small deposits in October, ahead of the 28.7% recorded in September and 28.3% in August.

Yorkshire had a higher proportion of mortgage approvals to small deposit borrowers than any other region during October, with 36.6% of total applications going to this sector of the market.

This put the region well ahead of the North West, its nearest rival, where 33.3% of applications were approved. The Midlands (32.5%) and Northern Ireland (32%) were the two other areas which saw a market share of over 30% this month.

Conversely, just 20.7% of loans in London went to those with small deposits.

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

“Rates, which have fallen to a little over 1% for the cheapest two-year fixes, have helped sustain activity.

“As the number of mortgage products continues to grow, borrowers across England and Wales have seen an increase in the number of options available them.

“However, saving enough cash for a deposit remains a big issue for many. Those in Yorkshire benefit from a market tilted more in their favour, while Londoners face the biggest struggles in their efforts to achieve their housing dreams.”

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