Increase in home loans for lower deposits

By Nicholas Boyle

Figures from financial information group Moneyfacts have revealed that the proportion of home loans available to people with small deposits has reached its highest level for 24 months, the Independent reports.

Home loans that require borrowers to lay down at least 25% of their home`s value as a deposit now account for less than 50% of the market for the first time since January 2009 (the figure has fallen to 46%, in fact). Loans open to people with smaller (or no) deposits account for 54%.

Homebuyers with a 20% deposit now have access to 390 home loans, compared with just 97 the same time two years ago.

People with a deposit of 15% have seen the home loans available to them increase to 560, while those with a 10% deposit have had their choice increased from 94 products two years ago to 214 now.

Despite the increase in the number of loans available to people with smaller deposits, though, there is `little sign that banks are increasing their lending levels`.

Tags: loan, loans, deposit, borrow, lending

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