Premier global property news service Property Wire has reported that the number of house buyers with smaller deposits is growing gradually in the UK residential property market. This indicates that prospective home-buyers are going ahead with smaller deposits while opting for higher borrowings.
Quoting Mortgage Monitor from residential surveyors, e.surv, Property Wire observed that home buyers with a deposit of 15 per cent or less made up 20.5 per cent of the lending market in February 2017. It was substantially higher than both the previous month and the corresponding period last year.
“Buyers with smaller deposits are growing in number as more people get themselves onto the property ladder. The new year started in a positive fashion and this trend has continued into February,” said Richard Sexton, director of e.surv chartered surveyors.
The data hints at mortgage lenders being more receptive towards first-time house-buyers in the UK. First-time home-buyers account for a significant size of the home-buyer segment in the UK. While the demand for homes continue to rise, the supply has not matched pace leading to increase in price rise.
There is a need for the housing stakeholders to come up with an innovative plan to provide housing for first-time home-buyers.
In total home borrowers with a deposit of 15% or less made up 20.5% of the market in February, substantially higher than both the previous month and the same point last year, according to the Mortgage Monitor report from residential surveyors e.surv.