Mortgage borrowers putting less towards deposits

Borrowers with smaller deposits accounted for the largest portion of house purchase lending in five months in February.

Home buyers with deposits of up to 15% of the total value of their property accounted for 16.9% of mortgage approvals last month, a significant proportional increase from 15.3% in January and just 13.9% in December.

The latest Mortgage Monitor data also reveals that 10,300 higher LTV loans were approved in February – a 10.7% month-on-month increase compared with January.

Data from property property services firm LSL also shows that average UK house prices were 6.8% higher in February than they were in the same month last year, with London and the south east continuing to lead national house price growth des¬pite slowing substantially.

About the author:

John Collard was the director of the Company until December 2013 and now works part time as a Consultant. He is a law graduate and before joining Robert Holmes & Co. He had extensive experience of residential property matters, having worked in Central and South West London for the last 40 years. John is also an active Trustee of the charity Beating Bowel Cancer.
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