According to e.surv, the lowest ratio of 2017 was observed in May, with large deposit borrowers taking out just 33.9% of loans. This level is significantly below January’s portion of 35.4%.

Although buyers with large deposits are declining, this doesn’t mean that other borrower figures are immune from falling. In May, small deposit borrowers saw their portion of the market drop from 21.5% in April to 21.3% – this follows a four-month period of continual growth. May’s figure is, however, substantially higher than the end of last year; small deposit borrowers were equivalent to 16.1% of the market in December 2016.

On a monthly basis, the overall size of the mortgage market saw an increase in May, despite remaining smaller than the correspondent month last year. Growing by 1.1%, seasonally adjusted approved loans reached 64,645. This is still 3.2% below the amount reached in May 2016.

Regionally speaking, the North West was home to the highest number of small deposit borrowers during May. Here, they made up 31.1% of the market, significantly in front of other surveyed areas.

Where large deposit borrowers were concerned, the majority were recorded in Scotland, where over a third (39.4%) of loans here went to this type of buyer.

Commenting on the research was Richard Sexton. The director of e.surv chartered surveyors stated:  “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.

While the number of small deposit borrowers has fallen between April and May, the market still remains much bigger than it was at the turn of the year. 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 North of Birmingham showing growth in applications.”

Taken from Today’s Conveyancer and written by Georgia Owens