According to the Mail this week, a quarter of all house loans now require a 40 per cent deposit, not something that everybody has hanging around in their bank account at the moment.  On an average house price of £160,000 that means £64,000 deposit – ouch.

Research from financial company Moneyfacts shows that last February only 24 mortgage deals from lenders required this level of deposit and at the moment, there are around 341 on the market that need that level now.

Darren Cook, of Moneyfacts, said:

‘The research shows how banks are cherry picking low-risk customers to lend money to.  Today’s mortgage market is freezing out young people and people who bought recently but need to remortgage.’

Having said this, the mortgage market has improved in the last couple of months as before Christmas there were no mortgage products at all for those with a 10 per cent deposit.  Now there are one or two creeping back in, including offers from Cheltenham & Gloucester and the Nationwide, however, the borrower’s credit does need to be good.

For those that are cash rich at the moment, there are some great bargains to be had as people panic-sell in order to avoid either repossession or financial trouble.

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