Borrowers with a deposit of 15% or smaller made up 20.5% of the market during February, according to the latest Mortgage Monitor from E.surv.
Last month, these borrowers took 18.7% of the mortgage market and in February 2016, they represented 15.7% of all house purchase loans granted.
This growth came despite the overall number of house purchase approvals dropping slightly between January and February. There were 66,911 loans (seasonally adjusted) approved this month versus 67,430 in January. This figure is down 7.4% compared to the same point in 2016.
Richard Sexton, director of E.surv chartered surveyors, said: “Buyers with smaller deposits are growing in number as more people get themselves onto the property ladder. The new year started in a positive fashion and this trend has continued into February.
“This may be because mortgage lenders are now more receptive to first-time buyers, but also could be the number of government housing schemes helping people save for their deposit tobuy a home.
“Despite this positive performance, the market for first-time buyers and those with small deposits still needs support. These buyers are the key to housing chains, allowing others to sell on and move up the ladder. It will be interesting to see what trends develop as the year progresses.”