The North West is small deposit hotspot
The North West is the best place to purchase a home with a small deposit, e.surv’s February Mortgage Monitor reveals.
Small deposit buyers, defined as those with a deposit smaller than 15%, represent just under a third (30.8%) of the mortgage market in the North West, followed by Yorkshire (25.2%).
On the other end of the spectrum, London has the most buyers with big deposits, with some 43% of borrowers in the capital having deposits of 60% or more.
Richard Sexton, director of e.surv chartered surveyors, said: “The North West and Yorkshire continue to tussle for the top spot in the battle to be the best area for first-time buyers.
“The reality is that both these areas are great places to take your first steps onto the housing ladder, or if you already have a property but are struggling to build your deposit.”
The report highlights how home buyers with small deposits made up more than a fifth (20.5%) of the mortgage market in February.
These figures come as the overall number of house purchase approvals experienced a year-on-year decrease of 7.4%.
Sexton added: “Buyers with smaller deposits are growing in number as more people get themselves onto the property ladder.
“This may be because mortgage lenders are now more receptive to first-time buyers, but also could be the number of government housing schemes helping people save for their deposit to buy a home.
“First-time buyers are the key to housing chains, allowing others to sell on and move up the ladder. It will be interesting to see what trends develop as the year progresses.”
The proportion of loans made to home buyers with large deposits dipped below 35% in February, with larger deposit borrowers with 60% or more making up 34.7%.
Sexton said: “These figures show that while the number of small deposit buyers obtaining mortgage finance has increased, this segment of the market remains in the shadow of those borrowers with larger sums.
“The range of products available for borrowers with a small deposit has increased significantly in recent years, allowing more and more people to achieve their housing aspirations.”