"The latest approval figures suggest that cheap mortgages are attracting a consistent level of borrowers into the market, regardless of the weather."
Strong remortgage and first-time buyer activity meant that approval figures rose by 4% year-on-year in November and were also slightly higher than in October.
First-time buyers continue to increase their market share, with 25.9% of all loans going to small deposit borrowers in November, higher than the 24.6% recorded in October.
This has helped sustain activity towards the end of the year, the figures show, where typically the number of home buyers searching for new homes tails off into the winter months.
The e.surv research also shows that northern regions of England and Northern Ireland continued to be the most attractive for small deposit house hunters.
In Yorkshire, 34.8% of loans were awarded to borrowers with smaller deposits, followed by the North West at 31% and Northern Ireland, which scored 29.2%.
These three regions all recorded a higher proportion of small deposit borrowers than their large deposit counterparts.
At the other end of the scale, just 16.5% of borrowers in London were in this category.
Richard Sexton, director at e.surv, commented: “Conventional wisdom suggests that as we reach the end of the year, the number of people looking for houses drops away.
“But while this is likely to be the case next month, the latest approval figures suggest that cheap mortgages are attracting a consistent level of borrowers into the market, regardless of the weather.
“However, in December mortgage lenders often look to secure their annual targets, sometimes resulting in keenly-priced deals on offer at the end of the year.
“We have already seen a number of cheap first-time buyer deals launch in recent weeks, and other lenders could follow suit.
“The market has continued to shift towards those first-time buyers and others with smaller deposits, and away from those with large amounts of equity in their property.
“Almost 1,000 additional small deposit buyers achieved their dream of home ownership this month compared to October.
“While experts often talk about UK-wide averages, scratch underneath the surface and there are several distinct regional markets in the UK.
“People looking to buy in northern parts of England, as well as Northern Ireland, tend to have smaller deposits while those closer to London must have a big amount of cash to put down.
“Buyers in the south of England should not be despondent, however, as there are great pockets of value in the capital and surrounding counties.”
