First-time buyer figures dip in February: e.surv

Mortgage approvals dipped by 0.5% in February as lending to small deposit borrowers fell back slightly, according to the latest data from e.surv.

Related topics:  Mortgages
Rozi Jones
19th March 2019
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"While confidence has fallen in the housing market due to economic and political turbulence, the mortgage market continues to grow."

26.3% of all loans went to small deposit borrowers, down from the 27.1% recorded in January.

However the total number of approvals remains 3.8% higher than in 2018 and e.surv says the outlook remains "generally positive" for first-time buyers.

Borrowers with large deposits also saw a dip in February, down to 26.9% of the market. This is lower than the 28.1% recorded in January and further back from the 30.1% seen in December.

Instead, approvals shifted towards mid-market borrowers in February, who increased their market share from 44.8% to 46.8% over the month.

Yorkshire remains the top region for first-time buyers, who occupied more than a third of the market in February at 34.1%.

Northern Ireland was the next most attractive area for first-time buyers and others with small deposits, with 31.9% of all loans going to these applicants.

The North West rounded out the top three, at 31.4%.

As was the case last month, the North West, Northern Ireland, the Midlands and Yorkshire were the four regions which saw a higher proportion of mortgages go to small deposit borrowers than those with large deposits.

Richard Sexton, director at e.surv, commented: “While confidence has fallen in the housing market due to economic and political turbulence, the mortgage market continues to grow.

“Existing homeowners are able to lock into cheap fixed rate deals while first-time buyers are being helped by more generous criteria being offered by banks and building societies.

“Raising a deposit remains a challenge for young borrowers, but there are more products being launched which are targeting those with little cash to spare."

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