Those unable to save big mortgage deposits 'suffering high rates'

Date:Tuesday 23rd June 2009
Author: Susanna Kavka

People who cannot put forward large mortgage deposits are suffering high interest rates on home loans, it has been claimed.

According to, consumers with a mortgage at 85 per cent loan-to-value may be charged up to one per cent more on their home loan than those with more sizeable sums of money to put down on a property.

The firm claims that a consumer who buys a property worth £200,000 on a mortgage with a term of 25 years could end up paying a total of £14,000 extra every five years if they have to borrow ten per cent more. went on to say that many people now face being "on the wrong side" of the 75 per cent line and even though they may have perfect repayment histories, they will be penalised with "loaded interest rates" because the value of their property has decreased.

Recently, suggested that the interest rates charged on fixed-rate mortgages are rising.

It said that the average rate charged on such loans went up to 0.21 per cent over the course of last week.