Cash is king in London but buyers borrow big in Yorkshire
Mortgage borrowers with small deposits account for almost a quarter of the UK mortgage market, or 23.4%, according to e.surv’s latest mortgage monitor, a rise of 3% compared to May.
Yorkshire was the leading location for small deposit borrowers, with a third of all loans going to these high loan to value customers.
At the other end of the scale is London where only 16.2% of borrowers had a small deposit. In fact e.surv noted that the capital is dominated by cash buyers and those with large deposits.
Richard Sexton, director at the firm, said: “The opposite is true in areas of northern England, where there are better opportunities for those with small deposits to get onto the property ladder.
“But with lenders offering low rates across the whole country, now is a good time to lock into a cheap mortgage deal before rates eventually begin to rise once more.”
There was good news for those looking to borrow with the number of mortgages approved rising last month. More than 66,400 borrowers took out mortgages in June, according to e.surv.
Sexton added: “Speculation about a potential base rate rise in August may increase interest, as more borrowers look to lock in a low mortgage rate before any increases take place.”