A website covering the British real estate industry has reported an increase in the number of buyers with small deposits (15 per cent or less). In January of this year, these buyers made up 18.7 per cent of total mortgages. In December of last year that percentage was 16.1 per cent. This type of buyer is generally one purchasing a home for the first time. The increase is believed to be a result of lower interest rates. A leader of a professional group called on the government to increase the housing stock.
Key Takeaways:
- The number of small deposit buyers have increased this year as compared to last year in 2016
- Though there is an increase of small deposit buyers in the market due to lower rates, a large number of holders are still with people with larger deposits
- This new mortgage buyer population is what we just might need to move the economy in the right direction in the UK
“First-time buyers are benefiting from historically low mortgage rates and this is helping more people onto the property ladder for the first time. Government schemes such as the Help to Buy ISA are also providing support for those still saving for their deposit.”