Large deposit borrowers take bigger share of the mortgage market

Ryan Bembridge

November 3, 2017

Mortgage borrowers with at least a 60% deposit took their biggest share of the market for eight months in September, e.surv’s Mortgage Monitor has found.

They took a 35% share of the market, up from 34.4% in August.

Small deposit buyers with a deposit less than 15% took a smaller share of 20.3% in September, down from 19.8% in August.

Richard Sexton, director of e.surv, said: “The growth in larger deposit borrowers comes at the expense of those with smaller amounts of equity.

“With mortgage rates beginning to creep up ahead of a potential interest rate rise in November, perhaps this has prompted homeowners to take action and secure a low rate while they can.

“Remortgage activity is very high at the moment and, while rates are starting to rise, there are still many great deals on the market for borrowers to take advantage of.”

Regionally the highest proportion of small deposit borrowers was in the North West (32.7%), followed by Northern Ireland (28.1%).

The area with the smallest proportion of small deposit borrowers was London (13.1%).

Sexton added: “Borrowers in London who don’t have either a big deposit saved or large amounts of equity in their existing property are finding things particularly difficult.

“These markets are dominated by those with cash to splash, making it more difficult for young buyers to get onto the ladder.

“By contrast, northern England and Northern Ireland are the markets most receptive to those with a small deposit.

“This month it was the North West which was the best location for first-time buyers, but Yorkshire and Northern Ireland are also ideal places to get onto the property ladder for the first time.”

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