First time buyer activity strengthens in Yorkshire
Small deposit borrowers have seen their share of the mortgage market improve as approvals increased in October.
Data from 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%. The north-west saw 31.2% of mortgages go to low deposit borrowers compared with 23.3% for those with more to put down.
The final region to follow suit was the midlands, where 27.1% of loans went to small deposit borrowers compared with 25.7%.
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. The countrywide picture appears to be moving away from those with large deposits.”