"The strength of the remortgage market means that many mid-market borrowers, who often benefit most from switching, are flocking to lenders"
The number of residential mortgage approvals rose by 1.2% in May, according to the latest data from e.surv.
Existing homeowners are driving the mortgage market, according to e.surv, as the proportion of loans given to small deposit borrowers saw a monthly drop of 0.7% to 27.7%. However, this figure is still well ahead of the 26% recorded in March.
Mid-market borrowers increased their share of the market most substantially, growing from 47.2% to 47.8% month-on-month.
Yorkshire held on to the small deposit hotspot title in May, with the region offering the most favourable market conditions for small deposit borrowers ever month in 2019 so far.
In Yorkshire 34.9% of all loans went to this part of the market, followed by the North West at 33.7%.
The only other region to record over 30% was the Midlands, which registered a total of 31.3% this month.
Richard Sexton, Director at e.surv, commented: “The doom and gloom in the property market seems a mile away from the positive stories coming out of the mortgage market.
“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. Those looking to switch could save hundreds of pounds a month by moving to a cheaper deal from a rival lender.”
“The strength of the remortgage market means that many mid-market borrowers, who often benefit most from switching, are flocking to lenders in search of a cheaper deal, supported by advice from mortgage professionals.”
“Few people are likely to move to the other end of the country purely in search of a cheap house, but those in, or close to Yorkshire stand a much better chance of getting onto the property ladder with a small deposit.
“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.”