The latest data from e.surv has shown that the market share of small borrowers increased during September from 22.8% to 24.2%, resulting in a lending spike for the month. e.surv also reports that approval levels were up on the month.
According to the data, those with larger deposits also increased their market share, while every single part of the UK saw a smaller proportion of loans given to large deposit borrowers than a month ago.
London once again was the market with the fewest small deposit buyers, with just 13.8% of all loans going to this part of the market during September.
Richard Sexton, director at e.surv, commented: “There has been a shift in the market towards young borrowers in September, it will be interesting to see whether this carries on into October and the rest of the year.
Every single region reflected the national trend and saw a greater number of smaller deposit borrowers, while those with larger amounts of equity were squeezed. Those with small deposits in London and the South East still face a much harder time than those in the north and Northern Ireland. However, the slowdown in the capital will help more get onto the ladder in future months.
Despite the rate rise, new mortgage borrowing is still very competitive and homeowners will continue to be tempted by cheap fixed rates. This will protect them against future base rate rises."