Over 20% of all mortgage approvals went to small deposit buyers according to e.surv
Latest e.surv Mortgage Monitor February 2018 headlines ‘Small deposit mortgages kickstart new year.’
The February Mortgage Monitor revealed a positive start to the year for the UK mortgage market, with an increase in the number of small deposit mortgages being approved.
The latest Mortgage Monitor from e.surv found that 21% of all approvals went to small deposit buyers, well above recent months. In December 2017, 18.2% of loans were to this part of the market while the month before it was just 17.2%.
Richard Sexton, a Director of e.surv Chartered Surveyors, comments were:
“We are now starting to see the effects of the Bank of England’s decision to increase the base rate filtering through to the market.
“While it is now two months on from the base rate rise, we are starting to see those who were alarmed by the talk of increased rates finalise new mortgage deals, whether with their existing lender or elsewhere.
“First-time buyers and others with smaller deposits have experienced a strong start to the year, with the proportion of loans rising compared to the end of 2017.
“While other types of borrowers have been squeezed, the larger overall mortgage market means that more people are getting approved than a month ago.”
Richard Sexton, a Director at e.surv Chartered Surveyors, concluded:
“We know that raising a deposit is one of the most difficult tasks would-be homeowners face. House hunters in London face an uphill struggle to get themselves a big enough deposit to buy, but there are places in the UK which offer much more fertile ground.
“In the North West and Yorkshire there are more mortgages approved to buyers with smaller deposits than those with a large cash pile, both are ideal places to get your foot onto the property ladder.”
Read the e.surv Mortgage Monitor report February 2018 in full click here.
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