Small deposit borrowers enjoy strong start to 2018

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Borrowers with small deposits accounted for more than a fifth of the mortgages approved last month, the latest ‘Mortgage Monitor’ from e.surv reveals.

This figure is up from 18.2 per cent in December and 17.2 per cent in November.

It equates to 13,962 loans to small deposit borrowers in total.

Large deposit borrowers – defined as those with a deposit of 60 per cent or more – accounted for 35.9 per cent of all approvals.

The north west was picked out by e.surv as a small deposit hot spot, with almost a third (31.1 per cent) of loans approved in the region going to these buyers.

This was ahead of Yorkshire at 30.3 per cent and Northern Ireland at 28.9 per cent.

Notably only the north west and Yorkshire saw more loans go to small deposit borrowers than their large deposit counterparts.

Small deposit buyers face the biggest difficulties in the capital, with just 16.6 per cent of approvals in London.

E.surv director Richard Sexton says that raising a deposit is one of the most difficult tasks would-be homeowners face.

He adds: “House hunters in London face an uphill struggle to get themselves a big enough deposit to buy, but there are places in the UK which offer much more fertile ground.

“In the North West and Yorkshire there are more mortgages approved to buyers with smaller deposits than those with a large cash pile, both are ideal places to get your foot onto the property ladder.”

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