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Large deposit borrowers fall freeing up stock for first-time buyers

The proportion of people acquiring property with a large deposit dropped in May, the latest mortgage monitor from e.surv shows.

Those buying property with a large deposit, which is defined as those with a deposit of 60% or more, took out 33.9% of all home loans in May, down from the 34.6% recorded in April, and the lowest ratio seen so far in 2017.

Borrowers with small deposits saw their share of the market increase marginally from 21.5% to 21.3% month-on-month, with mid-market borrowers benefiting from other shrinking parts of the market.


The overall size of the mortgage market increased month-on-month but remained smaller than it was in May 2016. There were 64,645 loans - seasonally adjusted - approved this month, 1.1% higher than in April 2017, but 3.2% down on the same month a year ago.

Richard Sexton, director of e.surv chartered surveyors, said: “May was a month for the mid-market  borrowers as large and small deposit buyers saw their share of the market fall.

“But this can also be viewed as a positive for young buyers. As mid-market borrowers move up the ladder and into bigger properties, this frees up stock for buyers looking to get onto the ladder for the first time.”


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