It is claimed that first time buyers (FTBs) and people claiming to Remortgage need to make a deposit of 30 per cent. According to Moneyextra mortgage index, average loan-to-value or LTV rates have dipped to a two-year low. The average LTV for first-time buyers was 82 per cent last year which has sunk to 71 per cent this year.
Additionally, the supply of borrowing for FTBs who have made a ten per cent deposit has fallen by 84 per cent compared to last year.
The First Time Buyers are facing a critical situation. The depressed market means that you can make bargains but at the same time it is difficult to crack a good deal without a decent deposit claimed Richard Mason, mortgage expert at Moneyextra.
He also said that though loans are available, lenders are acting cautiously on the whole.
The latest figures revealed by Moneyextra suggest that several mortgage applications have been rejected over the last two years.