More Britons purchasing homes with smaller deposits

August 5, 2017 by Brendan O'Neill

Property Market

First time buyers will be pleased to hear that more homes are being bought by Britons with a small deposit.

The number of buyers with large deposits is falling, leaving those looking for a mortgage with a small deposit dominating the market. More than a fifth of buyers had a small deposit in June this year, at 21.3%. In December 2016, there was just 16.1%. For four consecutive months, loans with a large deposit have accounted for less than 35% of total market value. The director of e.surv chartered surveyors, Richard Sexton, said:

“Low mortgage rates and government schemes are helping more buyers onto the ladder and we are seeing this happen in greater numbers than it was at the end of 2016. We are also detecting an apparent shift in the geographical distribution of lending overall- with London and the South East growing quieter, and areas of North Birmingham showing growth in applications.”

According to experts, mortgage rates are at record lows, and they are expected to rise very soon. Experts state the cheaper rates were due to increased competition between lenders. The Council of Mortgage Lenders has warned that this will end soon, with interest rates beginning to rise.

It is crucial to save money in all areas when buying a home, which a CeMAP qualified mortgage advisor can help with. Some experts also believe that it is cheaper to sell your home online, with HouseSimple stating that a vendor is 40% more likely to land a sale online.