e.surv found that overall, there were 66,435 mortgages approved during June, 3% higher than in the previous month, with 23.4% of the total UK mortgage market going to small deposit borrowers. According to the report, this is higher than the 22.4% recorded in May and continues a recent trajectory which has seen small deposit borrowers increase their share of the market.
The top location for small deposit borrowers was Yorkshire, with 33.7% of all loans going to these customers, compared to just 16.2% in London. The North West enjoyed a similar rate of small deposit buyers, recording 32.1% this month, followed by Northern Ireland with a rate of 28.1%.
However, Northern Ireland displaced London as the part of the UK with the highest proportion of buyers with large deposits.
In this region 39.8% of all approvals were to borrowers of this kind, ahead of London where the figure was 38.5%.
Richard Sexton, director at e.surv, commented: “While the housing market appears to have plateaued in some areas, there was good news for those looking to borrow to fund a house purchase.
Mortgage approval rates are up both compared to last month and the same point a year ago, suggesting that lenders are offering deals which are tempting more borrowers to the market. Speculation about a potential base rate rise in August may increase interest, as more borrowers look to lock in a low mortgage rate before any increases take place.
It really is a postcode lottery as to the local market you experience. Areas of London and the South East continue to be dominated by cash buyers and those with large deposits. Yet the opposite is true in areas of northern England, where there are better opportunities for those with small deposits to get onto the property ladder.
But with lenders offering low rates across the whole country, now is a good time to lock into a cheap mortgage deal before rates eventually begin to rise once more.”
