Mortgage News 40 Percent Deposit Required For A Quarter Of All Mortgages 2717

40% deposit required for a quarter of all mortgages

07 January 2009 / by Rebecca Sargent
A quarter of all mortgages available today require a deposit of 40 per cent of the property’s value, new figures from have revealed.

The figures show that of the 1,372 mortgage products currently available, 341 offer 60 per cent loan to value (LTV), compared to just 21 of the 3,419 mortgages that were available just 14 months ago.

The number of products offering 90 per cent LTV has also fallen dramatically, down to 148 compared to 1,152 in November 2007. Those rewuiring a deposit of five per cent or less have also fallen to just 21 compared to 1,383 14 months ago.

As it stands, according to, 60 per cent of all mortgages on the market today are only available to those who have a deposit of at least 25 per cent, potentially pricing first time buyers out of the market.

Commenting, Michelle Slade, spokesperson for, said: “The number of deals available for those with a deposit of 25 per cent or more continues to increase as the lenders are looking to cherry pick the best customers.

“Worries over falling house prices and the potential of customers getting into negative equity has caused the number of deals for customers with just a 10 per cent deposit or less to fall to an all-time low.”

The figures come despite desperate attempts by Gordon Brown and the Bank of England to kick-start the economy with interest rate cuts and the re-capitalisation of banks, efforts which have so far had little obvious effect.

Economists are expecting interest rates to fall again later this week but whether they will be passed on to mortgage holders remains to be seen, despite threats to lenders from the Government to pass on savings to the consumer.

© Fair Investment Company Ltd

Written by Editorial Team