Thursday 28th February 2008
Independent mortgage broker John Charcol warns that Britons with no deposit to place on a property are being "politely nudged" out of the market.
A number of lenders have recently withdrawn products which offer a high loan-to-value ratio - the percentage of the value of the house covered by the mortgage.
Borrowers hoping to cover the full cost of the property using a mortgage are now facing exclusion from the market, the broker asserts.
Technical manager Katie Tucker says: "Following last weeks mass withdrawal of all mortgages that allowed you to borrow more than the value of your property, first-time buyers with no deposit - or existing debt - will find it difficult to buy."
She adds that she expects an increase in the number of parents raising money for their offspring to use as a deposit.
Birmingham Midshires and Northern Rock are among the lenders who were recently reported as having withdrawn their 125 per cent loan-to-value mortgages from the market.
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