The number of people with small deposits being approved for a mortgage has risen to the highest level since before the recession.
According to the latest statistcs from e.surv’s mortgage monitor, there was a 7.4% rise from last month on the number of borrowers who received a mortgage with a 15% deposit or less. The latest figures represent a 22.5% rise from last year.
13,200 people in September were approved for a mortgage with a small deposit, the highest level since October 2008. 18.1% of all borrowers who were approved for a mortgage during the month had a small deposit.
The region which seen highest loan-to-value mortgages being approved was Yorkshire, with small deposits accounting for 29% of all mortgage lending. The only region to witness a drop in mortgage approvals where the deposit was 15% or less, was the Midlands which fell from 22% to 21% of all mortgage lending.
Overall mortgage approval rates for September reached 72,930, which is a 20% rise for the same month last year.
Why Small Deposit Lending Has Risen
The housing market, along with the economy in general would appear to be growing in confidence. Director of e.surv chartered surveyors, Richard Sexton said:
“It’s not just lenders who have been affected by a calmer financial outlook in recent months, prospective mortgage borrowers have seen their potential savings bolstered by low inflation rates and a recovering economic climate,”
This is great news for first time buyers with a small deposit as they could now be suitable for a mortgage in order to purchase their first home. It could also help families looking to move into a larger home, but never thought they could afford the deposit.
Eddie Chisholm at Pivotal Financial Planning said,
“Obtaining a mortgage has been difficult in recent years, with lenders requiring borrowers to have a large deposit before applying for a mortgage. Lenders are moving in the right direction to make mortgages more accessible to a larger percentage of the population. It’s positive that not only are mortgages becoming more accessible, but the interest rates are reducing for mortgages with a smaller deposit too.”
Get A Mortgage with Small Deposit
If you have considered applying for a mortgage but you only have a deposit of 15% or less, then speak to Pivotal Financial Planning. We can assess your financial circumstances and advise on the best available mortgage to suit your needs.
Contact Pivotal on 0141 243 2475 and we can help find the right mortgage for you.
Leave a Comments