Mortgage availability drops 50% for small deposits

Research from Moneyfacts.co.uk shows the risk of falling house prices is now a major factor in lenders' product ranges, with lower LTV products taking up a growing share of the market. The proportion of mortgages available to buyers with a deposit of 10% or less, including 100% plus products, has fallen from 74.2% in September 2007 to just 29.2% this month. Mortgages for buyers with no deposit have become particularly rare, accounting for just 0.5% of mortgage available in September 2008, compared with 13.4% a year ago. Darren Cook, mortgage expert at Moneyfacts.co.uk, explains: “Competi...