5 Nov

Lenders 'more accommodating with deposit criteria'

Lenders 'more accommodating with deposit criteria'

Lenders are becoming more lenient with their deposit requirements, according to Moneyfacts.

Since the Bank of England cut interest rates to 0.5 per cent in March 2009 - their lowest level in history - financial institutions have started to increase the number of high loan-to-value (LTV) products on their books.

Moneyfacts reported that, since March, the number of products requiring a 15 per cent deposit had increased from 169 to 231, while the number of mortgages requiring ten per cent of the property value in advance had risen by 16, to 105.

Darren Cook, spokesperson for the consumer website, commented: "Lenders seem to be getting a bit more comfortable now that property values are levelling out and are prepared to advance to a higher value, but this still comes with a premium with rates relatively higher for smaller deposit mortgages."

He added that he was hopeful that this would allow a greater number of first-time buyers to access the property market.

On November 5th 2009, the Monetary Policy Committee decided to maintain its base rate of interest at 0.5 per cent for the eighth consecutive month.
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