- A total of 65,907 mortgage approvals were issued in July, 4.9% down year-on-year
- Approval figures have dropped since the 73,060 peak recorded during the run up to stamp duty changes
- Proportion of borrowers with small deposits (15% or less of their properties’ total value) remains higher than previous years
The latest Mortgage Monitor from e.surv, the UK’s largest residential chartered surveyor, found that 65,907 mortgage approvals (seasonally adjusted) were issued to buyers during the month. This is 4.9% lower than the number of approvals made in July 2015.
These figures are also below the highs recorded at the start of 2016. In January and February, mortgage approvals totalled 73,060 and 72,512 respectively, although this figure may have been artificially boosted by buyers making purchases ahead of the stamp duty tax changes in April.
The proportion of approvals made to borrowers with a small deposit was 18.3%, which is down on the previous high of 19.1% recorded in April of this year. However, it still remains above the level recorded in previous years. In July 2015 16.2% of mortgage approvals were to small deposit borrowers and in July 2014 this figure was 17.4%.
Following the UK’s vote to leave the European Union, it remains to be seen what the impact will be on the mortgage market. The Bank of England has made several policy announcements which are intended to restore confidence to the market. The full effect of these decisions will be seen in due course.
Source: e.surv Mortgage Monitor, July 2016