Reports of improving prospects for the housing market are misplaced, according to research suggesting banks are upping the number of new mortgages requiring giant deposits.
Market analysis by consumer website Moneyfacts suggests the number of new mortgages requiring a minimum 40% deposit has increased by 61% in the last six months. Meanwhile, it says the number of deals requiring a 10% deposit has decreased by two thirds in the same period. "Banks are far from predicting the end of the housing slump and are hedging their bets by increasing the number of their best mortgages to those who are fortunate to have a 40% deposit," Moneyfacts analyst Darren Cook says. According to Moneyfacts, the average mortgage rate for a 60% loan to value (LTV) mortgage is cu...
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