Mortgage lenders 'still demanding high deposits'

Date:Tuesday 7th April 2009
Author: Susanna Kavka

Mortgage lenders in the UK are still demanding high deposits from property purchasers, it has been said.

Figures produced by Moneyfacts indicate that on April 6th more than two-thirds (68 per cent) of home loan deals on offer required consumers to put down a deposit of at least 25 per cent, the BBC reports.

This compared with 66 per cent a month earlier.

It was also found that the number of mortgages available rose over the period from 1,398 in March to 1,485 this month.

Meanwhile, the number of home loans available at 90 per cent of loan-to-value (LTVs) dropped from 101 at the start of last month to 93 on April 6th, while LTV offers of 15 per cent rose from 237 to 258.

David Hollingworth of London and Country Mortgages stated: "The increase in deals with a 15 per cent deposit could be due to lenders reducing the number of, or withdrawing altogether from, deals with a ten per cent deposit.

Recently, Charles Davis, senior economist at the Centre for Economics and Business Research, said that there are "tentative" indications that the UK's mortgage market is improving.