First-time buyers and other small deposit borrowers accounted for almost a quarter (22.4 per cent) of the UK’s total mortgage lending in May 2018, up from 20.2 per cent the previous month, a new report reveals.
According to figures published by e.surv, small deposit borrowers were granted 14,891 loans last month, up from just 13,429 in April.
The surveyor’s report suggests that first-time buyers and others with small deposits are increasingly taking a greater share of the mortgage market.
In May, small deposit borrowers made up around a third of the market in regions such as Yorkshire, North West England and Northern Ireland.
However, in London and the South East, small deposit borrowers made up considerably less, at just 13.8 per cent and 18.9 per cent, respectively.
The report noted that there were ‘huge variations’ between regions.
However, Richard Sexton, Director at e.surv, pointed out that May marked the second month running that small deposit borrowers had, on average, seized a greater share of the market.
Due to this, he suggested that now might be a great time for first-time buyers to take steps to get onto the housing ladder.
“There was strong growth in the mortgage market in May, with approvals rising significantly compared to April,” he said.
“Mortgages are at the forefront of the national conversation, with many people assessing their options and looking to fix in this rising interest rate environment.
“While the base rate may have stayed at 0.5 per cent in May, speculation continues about the next increase, which appears to be coming sooner rather than later.”