More mortgages - still high deposits
April 7, 2009 by Brendan
News
Mortgage lenders continue to demand high deposits although the number of mortgages deals available has increased.
According to figures from the financial information service, Moneyfacts, just over two thirds (68 per cent) of mortgages need a deposit of 25 per cent. This is compared with 66 per cent a month earlier.
However, the number of mortgages available has gone up from 1,398 to 1,485 mortgages in the same period.
We wrote an earlier article about how the number of mortgages available at 90 per cent loan-to-value had increased, but this has now dipped slightly, going from 101 at the beginning of March to 93 yesterday. Those at 85 per cent loan-to-value have increased from 237 to 258 mortgages.
A spokesperson for London and Country Mortgages said that this shows mortgage lenders are still being cautious. He said:
“The increase in deals with a 15% deposit could be due to lenders reducing the number of, or withdrawing altogether from, deals with a 10% deposit.”
For those mortgages available for a 10 per cent deposit, the interest rates are naturally not as attractive but are also not falling at the same rate as those available to buyers with a 25-40 per cent deposit.
Written by
Brendan
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