Lenders opening up to lower deposits - Mortgages - News - Moneyfacts


Moneyfacts.co.uk News brings you the latest financial & economic news & reviews of the best products in the UK by our team of money experts.

Lenders opening up to lower deposits

Lenders opening up to lower deposits

Category: Mortgages

Updated: 08/05/2009
First Published: 08/05/2009

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.
Lenders are beginning to show a willingness to grant loans to borrowers with smaller deposits, according to the latest research from Moneyfacts.

Over the last month, there has been a seven per cent increase in the number of mortgage deals available overall, with noticeably more only requiring a deposit of 20 per cent or less.

Indeed, 38 new products were introduced in April that necessitated a 20 per cent deposit, while 14 more were made available to those with a 15 per cent deposit.

Numbers even rose slightly for those with just a ten or even five per cent deposit.

"We are seeing a number of mortgage providers slowing reducing their strict criteria and increasing the number of products available to those that can raise a lower deposit, albeit at a higher initial interest rate," said Darren Cook, head of press and PR at Moneyfacts.

"With more mortgages becoming available at higher loan to values, this can be seen as a sign that a number of banks are regaining some confidence within the housing market."

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 Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Homemover numbers fall for first time since 2011

The mortgage market enjoyed a record year in 2016, so it may come as a surprise to hear that the number of people moving home has fallen for the first time in five years, with fewer apparently taking advantage of the market.

2016: the best year for remortgaging since 2009

Remortgaging has certainly seen a surge in activity of late, helped in no small part by the dramatic drop in mortgage rates over the last year, so much so that 2016 as a whole proved to be the best year for the sector since 2009.

Homeowners underestimate remortgaging savings

Remortgaging has been enjoying a surge in popularity in recent months, and considering how much you could save, it’s a no-brainer! Unfortunately, many fail to realise the extent of potential savings, which could mean too few make the switch.