Mixed signals for mortgage hunters, latest figures show

The number of low-deposit mortgages available has reached the highest level since 2008, new figures show.

- KARL MATCHETT

Mortgage and general lending rules were tightened in the wake of the global financial crisis, which made it more difficult for some to secure amounts on a mortgage they needed – but also led to fewer defaults and people losing their homes as a result.

Lenders have recently been offering lowered mortgage conditions around and even below the 4 per cent mark, as interest rates slowly fall. Last month, Santander became the first major bank to make a notable change to its affordability tests, which priced up customers’ ability to pay back loans at a rate considerably above the true present level.

Moneyfacts data, as reported by the BBC, shows there are more than 440 deals on the market offering mortgages with just a 5 per cent deposit and more than 840 products on offer for homebuyers able to put down 10 per cent. It’s also possible to get no-deposit mortgages, but eligibility criteria are of course strict and there are only a handful of options in this area.