100% mortgage all but dead will 95% mortgages be next

The housing market seems to be stuck between a rock and a hard place at the moment, house prices have fallen by 6.9% in the past year and many would have thought that would be great news for first-time buyers, as things should be easier for them to get on to the housing ladder.

However; this is not the case, we know that houses are getting cheaper but taking out a mortgage is now more expensive than ever, firstly interest rates have increased along with increased mortgage lender fees.

One of the major problems that first-time buyers face is the death of the 100% mortgage, so if you have no deposit, then you have no way of getting on the property ladder.

The current credit crunch is now taking a firm hold on the housing market and this means that the next victim could be the 95% mortgage, just take a look at all the current deals, try and count how many of them are for a 95% mortgage.

Some of the best deals to be had are those that require at least 25% deposit, and that is the major problem, how many first-time buyers do you know with that kind of money to put down as a deposit on a house.