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Borrowers boosted as deposit requirements ease

Borrowers boosted as deposit requirements ease

Category: Mortgages

Updated: 01/12/2009
First Published: 01/12/2009

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Borrowers have received a welcome boost after it was revealed lenders have continued to ease their deposit requirements.

The latest research from Moneyfacts.co.uk has revealed a significant increase over the last month in the number of mortgage deals available for borrowers with deposits of between 10% and 20%.

By the end of November, 116 products were available for those with a 10% down payment, compared with 101 a month earlier, while 254 deals are now open to borrowers with a 15% deposit, up from 226.

Meanwhile, for those with a 20% deposit, the market has expanded by almost a third over the last month, with 153 products now available, up from 117 at the end of October.

"Slowly but surely we are finally seeing competition return to the mortgage market," said Michelle Slade, spokesperson at Moneyfacts.co.uk. "Lenders have adjusted to the post banking crisis world and are starting to relax their lending criteria.

"In the last month, we have seen lenders increasing the loan to values (LTVs) up to which their existing deals are available, or launching new deals at higher LTVs.

"Many house price indices are now showing a rise, meaning that the risk of higher LTV loans has lessened.

"While the best deals remain for those with a 40% deposit, those with smaller deposits are finally seeing rates starting to come down."

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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