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."