The Woolwich demands a 10 per cent deposit from new borrowers

Posted under General by Jermaine

The mortgage lending arm of one of the leading banks – Barclays – has become the latest major lender to demand at least a 10 per cent deposit from all its new borrowers.

The Woolwich, the mortgage lending arm of Barclays, has taken a decision perceived to be another clear indication of the credit crunch. The credit squeeze has forced many lenders to cut down on their lending. The Nationwide has just recently imposed a minimum 10 per cent deposit on almost all but two of its mortgage deals. Others with similar policies are Cheltenham & Gloucester, Alliance & Leicester, the Britannia and the Co-op bank.

“Set against the background of a continuously and drastically changing market, (we feel) it is prudent from a customer perspective to restrict the maximum loan to value (LTV) available to 90 per cent,” the Woolwich stated. The mortgage player has withdrawn all products, which are currently available for loans above 90 per cent with effect from May 8.