The mortgage scene today is certainly very different to how it was just a few short years ago.

For a long time, potential home buyers have become accustomed to being able to purchase a new property with a deposit of as little as 5 percent, sometimes without any deposit at all and occasionally the banks would even give you money to purchase a property with loan to values as high as 120 per cent!

Today the story is certainly very different with only the Abbey and Ipswich offering a 95 per cent home loan and a mere ten lenders offer a 90 per cent mortgage.  Still, even this is an improvement on the situation just a couple of months ago.  Despite government intervention, banks are still reluctant to lend money to each other and consequently to homebuyers.

Ironically, prices have dropped and interest rates are at an all time low, making now the perfect time for first time buyers to enter the market – an opportunity many have waited a long time for and thought might not come again.  However, they are still being held back by the lenders.  Surely government-backed banks should now be lending in order to boost the economy now that they have been bailed out by the taxpayer?

The availability of mortgages does seem to be improving however, so long as you do have a deposit and a good credit rating.

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