Just about 204 mortgages currently available compared with 997 a year ago

Posted under General by Jermaine

The credit crunch, which led to the nationalisation of the Northern Rock bank, has also caused a rapid shrinking of the mortgage market size as many lenders now find it tougher to raise funds – by borrowing from any other financial institution. Mortgages worth 125 per cent of a given property’s value disappeared earlier in 2008, immediately followed by 100 per cent mortgages.

Now deals that require a 5 per cent deposit are becoming tougher to find and deposits of 10 per cent, or even 15 per cent, may soon become standard, according to some housing market experts. “There are some 5 per cent deals still available, such as ones with the Post Office, RBS, HSBC and Skipton building society,” stated a mortgage market observer.

Compared to even a few weeks ago, there are very few good deals few around. According to a leading financial information service, there are presently 204 mortgages available from nearly 51 lenders who need a 5 per cent deposit, compared with almost 997 deals on offer a year ago.