Mortgages Uncovered

Any mortgage deal that once offered the chance for people to only rate a 10% deposit against the cost of their property have nearly completely evaporated from the market recent figures from the BBC disclose.

There are now only 66 deals offering 10% deposit compared with 586 only 3 months ago and 1,197 last February.

Mortgage brokers are now saying that they will not return until the price of houses starts to level off realistically.

Mortgage broker Ray Boulger who is also spokesman for John Charcol said

“The situation will get better some time, but property prices must stop falling, deals for those with only a 5% deposit have already all but disappeared, and now the trend is being followed for deals requiring a 10% down payment. First-time buyers are likely to be particularly affected by the falling number of low-deposit deals, at a time when homes are theoretically becoming more affordable for them. “ he also said, “lenders are still tightening their belts and so are likely to be rejecting more borrowers whom they considered to be at a greater risk of going into arrears. I do not see the situation getting better in the short term,” Aaron Strutt, of Chase de Vere Mortgage Management, said “ tracker deals - linked to the Bank rate - are the most attractive options at present, but the majority are only being offered to those with at least a 25% deposit. The best tracker deal on the market last Friday was from HSBC at 0.99% above Bank rate, with a £799 arrangement fee. Yet, this was only available to those offering a 40% deposit. “

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