Fewer low-deposit home loans available

16 June 2009

The number of home loans available to people with only a 10% deposit has fallen by 97% since the beginning of 2007, according to The Telegraph.

At the start of 2007 the housing market was strong, and The Telegraph claims there were 3,100 such mortgage deals available. Last week, that number stood at just 102.

Rates have also risen on these 90% LTV (Loan-To-Value ratio) deals, despite the base rate falling to 0.5%, the lowest it has ever been.

A loans and mortgages expert for Think Money said: "Lenders are still more cautious about lending than they were in recent years, so would-be homebuyers may find they need a larger deposit than they used to in order to qualify for a mortgage.

"However, there have been some signs that mortgage lenders are becoming more confident recently, and we could see the number of deals with lower deposit requirements increasing in the reasonably near future."

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