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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 It is now over 6 months old so the content may be out of date.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."

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