First-time buyers ‘taking a bigger share of the market’

11/15/2018

Small deposit borrowers have seen their share of the mortgage market improve as approvals increased last month, surveyors say.

Data from chartered surveyors e.surv suggests 24.6% of mortgages went to those with small deposits - typically associated with first-time buyers - in October, up from 24.2% in September.

Meanwhile, the proportion of larger deposit mortgages continued to fall, down to 29.6% in October from 30% in September, 32.5% in August and 33.8% in July.

Surveyors have forecast a 3.5% annual increase in mortgage approvals for October to 67,011.

Yorkshire registered the highest proportion of small rather than larger deposit loans at 33.7% compared with 21.1%, while the north-west saw 31.2% of mortgages go to low deposit borrowers compared with 23.3% for those with more to put down.

In Northern Ireland, 29.5% of mortgages were for those with a low deposit, compared with 24.7% in the larger end of the market.

The final region to follow suit was the midlands, where 27.1% of loans went to small deposit borrowers compared with 25.7%.

Unsurprisingly, London was the part of the country most dominated by those with larger deposits, at 39.8% versus just 14.7% for those with smaller cash piles.

Richard Sexton, director at e.surv, said: "Whilst a decline in purchase activity in general has been evident since the summer, first-time buyers and others with smaller deposits will be delighted to see similar buyers dominating the market across many UK regions.

"Those in Northern Ireland, Yorkshire, the north-west and the midlands are all operating in a fertile market for small deposit borrowers.

"Even those people looking to buy in other regions have a better chance of obtaining finance and getting on the ladder than previously, as the countrywide picture moves away from those with large deposits."