Many struggling to get low deposit mortgages

A recent report has shown that many people may be struggling to find a low deposit mortgage, as more and more lenders start to demand higher deposits for their mortgages, leaving first time buyers struggling to afford to get onto the property ladder. Since the onset of the global credit crunch the range of mortgage products on the shelves has been steadily dwindling, causing difficulties for buyers.

Before the credit crunch came around there were many different mortgage products available on the market, and borrowers could even enjoy putting down no deposit at all with 100 and 125 percent mortgages. However, these were taken off the shelves earlier this year, leaving consumers with very little choice when it came to getting a mortgage.

Some consumers are struggling even to get a 10 percent deposit mortgage, with lenders increasingly asking for higher deposits from borrowers such as 15 or 20 percent or more. For first time buyers with little in the way of savings and no previous property to take equity from this is causing real affordability issues.

Over recent months the housing market has already suffered real problems in terms of property sales levels, and it is thought that the lack of low deposit mortgages could add to this problems, as it could stop many first time buyers from purchasing property.