Number of low deposit mortgages keeps falling

Recent reports have suggested that the number of low deposit mortgages available on the market has been falling over the past couple of months, with fewer and fewer mortgage requiring a relatively low deposit on offer. This is proving to be bad news for first time buyers, many who have little to no deposit to put down, and all of whom have no previous property from which to take equity.

Before the onset of the global credit crunch in the summer of 2007 there were many different mortgage products available, and you could get mortgages such as the traditional 95 percent mortgage, 100 percent mortgages, and even 125 percent mortgages, which was great for first time buyers with little to put down on the mortgage.

However, since this time here have been some real changes in the mortgages sector. The number of mortgage products available has nosedived, and 100 and 125 percent mortgages have been taken off the shelves. The traditional 95 percent mortgage has become more and more difficult to get, and now even 90 percent mortgage deals seem to be dwindling.

Industry officials have said that there has been an increase in the number of mortgages on the shelves that require a deposit of 15 percent from the borrower, and those unable to put down a larger deposit are penalised with higher interest rates or may not be able to get a mortgage at all.