Mortgage deals require larger deposits

[Ronny]

While banks and building societies are offering new mortgage products they all are aimed at the lower Loan to Value market i.e. you require a large deposit to be able to apply for them.

" In the past month the proportion of new mortgage deals requiring at least a 25% deposit has risen, from 54% to 60%, and 25% of all deals on offer in fact require a 40% deposit"

These figures explain the problems first time buyers face when trying to obtain competitive mortgage rates.

[Paul_MN]

I have just secured a 90% LTV mortgage at a fixed rate of 5.69% for 5 years which is the best I have seen for quite a while.....however they have now withdrawn that offer so I got in just in time

It is very difficult for first time buyers though.....not many have £10k lying around let alone £20k-30k which is needed for a good rate on an average priced property.

[ComareTheMortgageMarket]

I tend to disagree with this as all along we have been able to write 90% deals (although there are considerably less of them available) so first time buyers do not require 25% deposit as it is so often reported in the media.

Providing a 25% deposit would however get you a better rate of interest but having less than this would not stop you from getting a mortgage.