First-time buyers preparing to step on the property ladder are being urged to make their purchase now while mortgage market conditions are in their favour.
That is the advice being issued on the back of newly-published statistics which also suggest that the best place to take advantage of this situation is in Northern Ireland.
Figures released by e.surv Chartered Surveyors revealed the number of mortgages with small deposits being approved had increased in February along with the number of first-time buyers.
According to e.surv’s Mortgage Monitor report, Northern Ireland experienced the greatest proportion of loans being approved for first-time buyers and others with a small deposit than in any other part of the UK.
In February 35% of loans went to this market, just ahead of Yorkshire and the North West where the proportion was 31.3% and 29.8% respectively.
Richard Sexton, director at e.surv said: “Buyers in London and southern areas typically have a much larger amount of equity than those in northern parts of England. These markets are dominated by large deposit buyers.
“By contrast, the Northern Irish property market is home to a greater proportion of small deposit mortgage approvals than anywhere else.
“Coupled with a lower purchase price, this a great place for first-time buyers to get onto the ladder.”
E.surv’s report also revealed a fall in the proportion of loans approved to borrowers with large deposits of 60% or more.
Overall the number of mortgage approvals fell in February, by 1.25% compared to January. However, 14,060 loans were approved to small deposit borrowers in February – more than the 13,962 in January.
Sexton added: “This is a great time to buy if you are a first-time buyer, but the favourable market conditions will not last forever.”
He added: “Mortgage rates are still at very low levels by historic standards, meaning that young borrowers can lock in and seal a great mortgage rate.”
