8th March 2010
The number of mortgages available to homebuyers has increased
over the past month, according to Moneyfacts.
Figures from the financial information service show 1,798
mortgage deals which require deposits of 0% and 40% were available
at the start of March, up by 6% on the previous month and 68% more
than a year ago.
Mortgages with just 0% or 5% deposits are still few on the
ground, but there has been a 90% increase in deals that ask for
down payments of 10% or 15%, with 489 now of them now
available.
Michelle Slade of Moneyfacts said: "There are a growing number
of mortgage providers who are becoming a little more accommodating
with their credit criteria and this bodes well for consumers who
will benefit from a growing competitive mortgage market.
"It is pleasing to see that the average mortgage rate is falling
at the same time as deposit requirements are getting smaller."
In recent weeks, Lloyds, RBS, Alliance & Leicester, Northern
Rock and Cheltenham & Gloucester have all slashed mortgage
interest rates by between 0.1% and 0.5%.
While RBS has raised its maximum advance for first time buyers
from £150,000 to £300,000 as financial firms become more relaxed
about lending.
However, the proportion of new mortgage deals that require at
least a 25% deposit is still very high - dropping 8% to 57% since
March 2009.
Back in August 2007, before the onset of the credit crunch, only
16% of mortgage deals on offer demanded such large down
payments.
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