25 percent of all mortgage loans require 40 percent deposit

Mortgage lenders are insisting on larger deposits on their home loans, with December seeing an increase from 54 percent to 60 percent of new mortgage deals requiring 25 percent deposit according to MoneyFacts.

With the Bank of England announcing last week that banks and Building Societies will decrease their lending further in the coming months of 2009, and lenders choosing their borrowers extremely carefully the prospect for the property market is remaining grim.

With the possibility of house prices falling even further and more and more customers falling into negative equity lenders are protecting themselves with the number of mortgage loans requiring just a 10 percent deposit hitting an all time low.

The number of mortgage products that needed just 10 percent deposit has fallen from 1,200 the figure in February 2008 down to 148 now.

Source: BBC