Increase in UK mortgages for small deposits
UK lenders are beginning to extend their range of mortgage products aimed at prospective home buyers with small deposits.
In the years since the global banking crisis taking the first step on the UK property ladder has become a very distant dream only attainable for the very few who are able to produce a cash deposit of around £28,000 on average as 100 per cent UK mortgages became more rarer than hens teeth.
The first time buyer sector of the UK property market is, without doubt, the worst hit – thousands of homeowners are trapped in properties that are now too small for their needs and are unable to move up the chain because young adults who would have been expected to leave the family home to set up their own household are struggling to fund the sizeable deposits now required.
But things are starting to improve in the last year the amount of mortgages that require a deposit of just 5 per cent has increased to more than 60 and the range of products that require a ten per cent deposit have more than doubled to 264.