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News: Small Deposit Mortgage Deals Disappear

Mon, 17 Nov 08

Mortgage lenders have withdrawn most of their deals for homebuyers with small deposits.

According to Moneyfacts there are now only 66 deals for those with a deposit of 10% or less, compared with 586 three months ago and just under 1,200 nine months ago.

The financial information service also found that deals for those with only a 5% deposit have almost entirely disappeared from the market.

The findings will be particularly grim for first time buyers, who were expecting more favourable deals after many lenders passed on the Bank of England’s recent cuts in interest rates.

The evidence from Moneyfacts shows that lenders are increasingly turning their attention to those with larger deposits, including those with significant equity in their property who are looking to remortgage.

Its figures show that deals for those with a 20% deposit dropped only slightly over the last 12 months and deals for those with a 15% deposit increased slightly.

 

By Joe Lepper

 

See also  - Mortgages

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