Mortgage approvals increase in March

According to the latest figures from e.surv, mortgage approvals grew 4 per cent when compared with the same period last year.

The new data shows that 66,174 mortgages were approved during the month of March, working out to a monthly growth of 2.9 per cent. On top of this, large deposit borrowing decreased month on month from 26.9 per cent to 26.2 per cent.

The findings of the report highlight that mid-market borrowers have been the main beneficiaries in the falling rates of both high and low loan-to-value (LTV). Borrowing in the mid-market increased from 46.8 per cent to 47.8 per cent.

London saw the highest proportion of large deposit borrowers in the country at 35.2 per cent and the smallest number of small deposit borrowers at 16.7 per cent.

This was followed by the South East which saw the second highest number of large deposit borrowers at 31.1 per cent and the second lowest number of small deposit borrowers at 22.9 per cent.

Richard Sexton, Director at e.surv said: “Mortgage rates have increased slightly compared to the rock bottom lows of the last few years.

“However, rates are still close to their historic lows, which is good news for those looking to take their first steps on the property ladder.

“With almost half of all mortgages going to mid-market borrowers, it is clear that many current homeowners are still coming to market for new loans.

“This may be because they are keen to lock into loans at the current low rates in the hope that it saves them money in the long term.