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13 Sep

First-time buyers boosting mortgage market

First-time buyers boosting mortgage market

The UK's mortgage market increased during July with more first-time buyers stepping on to the property ladder.

According to the latest Mortgage Monitor from e.surv, mortgage approvals rose by 6.7 per cent compared to last year, with 19.6. per cent being given to those with smaller deposits – 18.5 per cent more than in the previous month.

"The mortgage market is in a much happier place than 12 months ago when, in the aftermath of the UK’s vote to leave the European Union, activity had stalled as buyers and sellers took a pause for breath. One year on and we have seen approval levels bounce back," said Richard Sexton, director of e.surv.

It is also the sixth month in a row that has seen borrowers with large deposits account for less than 35 per cent of the total mortgage market. This could be explained by the increase in competitive mortgage deals available, as well as ongoing government schemes to help small borrowers move home.

There were also regional differences, with Northern Ireland reporting the greatest proportion of small deposit buyers, while London continues to see buyers with larger savings amounts.

"The difficulties Londoners face when trying to get on the property ladder are shown here once again. Buyers with a small deposit in the capital face a much more difficult task when they try to get on, or move up, the property ladder. The market in London is more dominated by those with cash to splash than any other area of the UK," said Mr Sexton.

He added: "By contrast, Northern Ireland is the best spot for first time buyers and others with little cash to put down. Almost a third, 31.7 per cent, of all loans in this area went to small deposit buyers this month."ADNFCR-1222-ID-801839828-ADNFCR

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