17 Feb

Boost in low-deposit deals for first-time buyers

Boost in low-deposit deals for first-time buyers

First-time buyers looking for houses for sale in 2011 may be able to secure a mortgage with a small deposit.

The number of home loan deals available to people trying to get onto the property ladder with smaller deposits is beginning to increase, according to Moneyfacts.co.uk.

A report from the financial advice website says lenders have been adding mortgage products with higher loan-to-value (LTV) percentages in recent months.

There are now 214 deals offering 90 per cent LTV, meaning a deposit of only ten per cent, compared to 144 in Feburary 2010.

First-time buyers with a 15 per cent deposit have the choice of 560 different mortgages, compared to 310 last year.

Louise Holmes, spokeswoman for Moneyfacts.co.uk., said: "Higher LTV mortgages are making a steady return to the mortgage market.

"This will be welcome news to borrowers with small deposits, particularly first-time buyers."

A recent summit by housing minister Grant Shapps aimed to discuss ways of helping people onto the property ladder.

Discussions were constructive, according to the Council of Mortgage Lenders (CML), which argued that more creative approaches were needed for first-time buyers.ADNFCR-1222-ID-800412354-ADNFCR

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