47 per cent more home loan borrowers secure a mortgage with small deposits

There has been a 47 per cent increase in the number of mortgage borrowers who have negotiated home loans with smaller deposits.Calculator 1

During August, banks and building societies agreed loans with 7,093 borrowers who paid a deposit of 15 per cent or less – compared with loans to 4,827 borrowers making the same deposit in August 2012.

Research by the chartered surveyors e.serv found that the number of loans advanced to borrowers making a 15 per cent deposit rose by 54 per cent. Loans to borrowers who put down a 10 per cent deposit climbed by 29 per cent.

Borrowers with small deposits in the Midlands saw the biggest improvement in mortgage availability, accounting for 15 per cent of all mortgage lending.

e.surv business development director Richard Sexton said: “Borrowers with smaller deposits fell out of the bottom of the market when the financial crisis hit, but they are returning now in their droves.

“Banks are easing lending criteria and mortgage rates are low. That means repayments are cheaper. Access and affordability – the two keys to the mortgage market – have improved.”

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