More low deposit mortgages available, moneyfacts reports

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More low deposit mortgages available, moneyfacts reports

Fri 6th Nov 2009

Increasing numbers of lenders are offering mortgages with ten per cent and 15 per cent deposits to attract first-time buyers, according to moneyfacts.

Loans requiring ten per cent of the value have risen from 169 to 231 since March 2009, and those looking for 15 per cent have increased from 89 to 105.

The total number of mortgage products available has grown from 1,431 to 1,564 in the past nine months.

While several lenders are offering accessible deposits, few are cutting their mortgage rates.

Darren Cook, spokesperson for the website, said it is encouraging that lenders are becoming more accommodating, but while some companies have made reductions to their rates there has not been enough for it to be return to competition.

"It looks like lenders are trying to make an effort to increase their prudent appetite to lend, but we need to see more lenders trying to better each other on rates," said Mr Cook.

Last month moneyfacts reported that the average length of availability for a mortgage deal had lengthened from 18 day to 24 working days in September.

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