Surveyors warn that first-time buyers are being squeezed out of mortgage market

The proportion of mortgage approvals to those with small deposits continued to fall during November, surveyors claim. The latest e.surv Mortgage Monit

The proportion of mortgage approvals to those with small deposits continued to fall during November, surveyors claim.

The latest e.surv Mortgage Monitor estimates there were 66,167 mortgage approvals during November, up 2.5% on October but down 1% annually.

The share of small deposit borrowers – those with deposits of up to 15% – fell from 17.7% in October to 17.2% in November and is now down from 20.3% recorded in August.

This equated to 11,381 small deposit approvals made during November 2017, lower than the 11,706 mortgages recorded in October and even further back from the 13,105 recorded in September.

More than a third (36.5%) of all approvals went to those with large deposits (defined as those with a deposit of up to 40%) – the same proportion as last month – while mid-market borrowers (those with deposits of up to 25%) saw their share grow from 45.8% in October to 46.3% in November.

Richard Sexton, director of e.surv, said: “While the mortgage market as a whole has continued its impressive recent performance, there are concerns about first-time buyers and those with small deposits being squeezed.

“Their share of the market continues to fall, which shows how important it is for lenders, Government and builders to do more to support buyers struggling to get on to the ladder.”

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