Low-LTV borrowers dropping out of market: e.surv

The number of would-be borrowers with a large deposit fell for the second month in a row, a report from e.surv shows.

In February, 26.9 per cent of loans were extended to this part of the market, a drop from the 28.1 per cent recorded in January, which itself was a fall from the 30.1 per cent seen in December 2018.

Meanwhile, borrowers with a small deposit made up 26.3 per cent of the market in February, down slightly from the 27.1 per cent noted in January.

Overall, the total number of approvals grew 3.8 per cent on a yearly basis but fell 0.5 per cent when looked at monthly, coming in at 66,465.

Yorkshire was the most popular area for borrowers with a small deposit – typically young and first-time buyers – making up 34.1 per cent of buyers in the area compared to 36.7 per cent in January, followed by Northern Ireland, at 31.9 per cent, also down, having recorded 32.7 per cent the month previous.

In contrast, London saw the greatest number of large deposit borrowers, at 36.8 per cent in February, down from 38.5 per cent the month before.

Looking at this metric, England’s capital was followed by the South East area, which recorded 31.8 per cent of borrowers having a large deposit, down from 33.5 per cent at the start of the year.

The falls in large deposit and small deposit borrowing in February appear to have been offset by growth in the mid-LTV category of mortgages. In February the proportion of this market grew monthly from 44.8 per cent to 46.8 per cent.

e.surv director Richard Sexton says that this indicates growth in the remortgage market, the deals in which “are tempting everyday borrowers to enter the market.”


e.surv logo

Mortgage approvals up in December: e.surv

First-time buyers, remortgage customers and second steppers all benefited from cheap mortgage rates in December, according to e.surv. The latest Mortgage Monitor from the firm found that there were 66,390 mortgages approved during the final month of the year. Approvals last month were recorded at 4.2 per cent higher than in November 2018, and 7.8 […]

The future of active management is now

Fees under pressure. Regulatory moves against closet indexers. Rapid advances in financial technology. Shifting sentiment among investors. Such mounting challenges have led to widespread speculation about active management’s shrinking future. But a closer look inside intelligent portfolio construction today tells a story of expanding roles, added value, and innovative risk-adjusted, lower-cost solutions. Four investment experts […]


News and expert analysis straight to your inbox

Sign up