First-time buyer mortgage approvals up in September

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New data published by e.surv in recent days reveals that there was an increase in the number of first-time buyers and small deposit borrowers securing a mortgage last month.

The research, which found that 66,704 mortgages were approved during September in total, reveals that just under a quarter (24.2 per cent) of loans went to small deposit borrowers, up from 22.8 per cent the previous month.

During the same period, the proportion of loans handed to borrowers with larger deposits (of 40 per cent or more) fell from 32.5 per cent to just 30 per cent, e.surv’s Mortgage Monitor found.

Commentators said that a slowing of house price growth across most parts of the country had helped would-be first-time buyers to realise their home ownership dreams.

The comments come at a time when separate research carried out by consumer advice website Which? reveals that the average cost of two-year fixed-rate mortgages – a favourite among first-time buyers – has recently fallen by around 0.04 per cent.

Richard Sexton, Director of e.surv, said: “There has been a shift in the market towards young borrowers in September and it will be interesting to see whether this carries on into October and the rest of the year.

“But with existing homeowners trapped on expensive standard variable rates now feeling the cost of higher mortgage rates, the re-mortgage market cannot be underestimated.”

“Re-mortgage activity was up compared to last month, and September 2017. Despite the rate rise, new mortgage borrowing is still very competitive and homeowners will continue to be tempted by cheap fixed rates. This will protect them against future base rate rises.”

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