Mortgages still restricted, reports brokers in North London, London Mortgage Advice Tuesday, 10th August 2010

Lenders of mortgages continue to ration the size of their loans to home buyers and people remortgaging.

Says the financial information service Moneyfacts, the number of deals on offer has risen by 66% this year, from 1,414 in January to 2,351 now.
A downpayment of at least 25% of the value of the home being boughtfor 58% of the deals available.

Of all the mortgages currently on offer
the proportion requiring only a 10% deposit still stands at just 8%

Explained Michelle Slade of Moneyfacts.

"There has been no real movement in the overall number of new mortgages available on the market [in the past month], but those that are available continue to be more competitive,"

"Many of the best deals are now available for a 25% deposit, having previously only been available for those with a 40% deposit."

Of mortgage deals requiring smaller deposits, the average interest rate being charged on them has drifted down, although there has been little change this year in the proportion.However these figures disguise the very wide difference in the interest being charged according to the size of the deposit being put down.

The average first-time buyer is now putting down a deposit of £35,000 to buy a home according to statistics from the Council of Mortgage Lenders (CML).