Mortgage approvals in the UK rose by 0.6 per cent between May and June, according to the latest home lending market monitor report published by chartered surveyors, e.surv.
There was also growth in the number of small deposit borrowers, with first-time buyers also being very active in the market.
The proportion of loans that are being granted to those with smaller deposits has growth to 27.9 per cent, an increase of 0.2 per cent on the previous month.
A significant portion of the growth in the mortgage market in 2019 has been attributed to existing homeowners, and they have continued to be very active in the market in June.
Whilst the market share of borrowers with larger deposits has also grown, increasing to 24.7 per cent, up from 24.5 per cent in May.
Northern Ireland now has the highest proportion of small deposit borrowers, while London has the smallest proportion of small deposit customers.
London also has the highest proportion of larger deposit purchases, with one-third of all customers falling into this category.
Richard Sexton, Director at e.surv, 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.
“We have seen an increase in the number of both small and large deposit borrowers and this is likely a result of more first time buyers getting on the ladder and also existing homeowners with lots of equity choosing to remortgage.”
Nicola Tubbs, a Partner with Palmers who heads our conveyancing team, said: “This is positive news for the residential property market and means that confidence is good, particularly amongst first-time buyers.
“However, in the rush to get onto the property ladder, it is important to select a conveyancer with care as a failure to choose wisely can lead to no end of delays and other problems throughout the transaction process.
“A good conveyancer will always keep you up-to-date with your transaction, reporting on search results, property titles and questionnaires and handling your deposit funds, Stamp Duty payments and more. They’ll even handle registering the ownership of your property at the Land Registry.”
“Appointing someone you can trust to carry out such sensitive work is vital, as is ensuring that your conveyancer can provide practical and clear advice from mortgage approval right through to completion.
“Equally important is ensuring that you are dealing with somebody with the knowledge and experience to help resolve any unforeseen issues which may arise ,” she said.
Palmers has a large Residential Conveyancing department, whose solicitors and conveyancers have over one hundred years of experience between them and understand the importance of providing a speedy, efficient and no-nonsense service, regardless of whether you are buying, selling or re-mortgaging.
For more information about how Palmers can help, or to find out more about our wide range of property services, please contact us.