Mortgage approvals crept up month on month in June

Latest figures are showing positive signs for the UK Mortgage market as signs of growth are being reported.

According to a recent study, the mortgage market in the UK saw growth between May and June with mortgage approvals up 0.6% along with growth in the number of small deposit borrowers.

Overall, the mortgage market was buoyed by strong activity among first time buyers and those with smaller deposits, with the proportion of loans going to these types of borrowers increasing month on month to 27.9% from 27.7% the previous month.

Richard Sexton, director at e.surv, the company carrying out extensive research on the mortgage market, said; ‘Summer can sometimes see a drop in or stall in activity, as would-be buyers take holidays and think less about their finances. Mortgage lenders have made a concerted effort to revamp their product ranges and launch new deals to help lure in borrowers,’ he said.

‘For existing home owners, there are now a wide range of remortgage products available which are designed to help them cut their repayments and get greater certainty about their future outgoings,’ he added.

Borrowers with large deposits continued to grow their market share and the number of mortgage approvals to this part of the market increased modestly to 24.7% from 24.5% in May.