Mortgage Approvals Down For First-Time Buyers But Not A Market Slow Down..

Surveyors insist a slowdown in the housing market isn’t being reflected in mortgage approvals despite data showing approvals for large and small-sized home loans dropped in February.

Figures estimated there were 3.8% more approvals last month than a year ago.

However, small deposit borrowers – typically first-time buyers – saw their share of the market drop from 27.1% to 26.3% between January and February.

On an absolute basis, the number of small deposit borrowers fell slightly from 17,981 to 17,480 between January and February.

The proportion of large loan-to-value (LTV) loans – usually up to 60% LTV – fell from 28.1% to 26.9% over the month, while mid-market borrowers – those with deposits of up to 25% – saw their share rise from 44.8% to 46.8% between January and February 2019.

Richard Sexton, director at e.surv, said: “While confidence has fallen in the housing market due to economic and political turbulence, the mortgage market continues to grow.

“Existing home owners are able to lock into cheap fixed rate deals while first-time buyers are being helped by more generous criteria being offered by banks and building societies.

“Raising a deposit remains a challenge for young borrowers, but there are more products being launched which are targeting those with little cash to spare.”


Property Eye contributed to this report..