The UK mortgage market “boasted” substantial growth between April and May, with first-time buyers among the main beneficiaries, according to the latest Mortgage Monitor from e.surv.

The monitor illustrated a sharp increase in the number of mortgage approvals in May, with a total of 66,479 approved, 6.4% higher than the figure reported in April. First-time buyers and those with a small deposit accounted for 22.4% of those who received approval, significantly higher than the 20.2% statistic found in April.

However, the report also revealed a wide variation between the regions of the UK, with some areas boasting a much higher proportion of small deposit borrowers, such as Northern Ireland, which accounted for 35.7% of all loans in this market. In contrast, only 13.8% small deposit mortgage approvals went through in London.

Furthermore, as well as monthly growth, the UK mortgage market grew by 0.5% compared to May 2017, with e.surv crediting the growth to the rumoured base rate increase that the Bank of England was expected to announce.

The next base rate decision is due to be made at the end of June.

e.surv director Richard Sexton said: “There was strong growth in the mortgage market in May, with approvals rising significantly compared to April.

“Mortgages are at the forefront of the national conversation, with many people assessing their options and looking to fix in this rising interest rate environment.

“While the base rate may have stayed at 0.5% in May, speculation continues about the next increase, which appears to be coming sooner rather than later.”

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