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First time buyers will require a larger deposit

16/01/2008

First-time buyers throughout London will be required to place a larger deposit if they decide to take out a mortgage deal.

Banks and building societies are choosing to take on this new method because of the current credit status.

Majority of mortgage lenders have enlarged the minimum deposit from 5% to 10%. This has caused homebuyers deposits to double.

A spokesman commented: "The decision was taken towards the end of last year. We are continually reviewing the market to ensure our products are appropriate, both for the business and for our customers."

The Cumberland Building Society stated they were no longer offering 100 per cent mortgages.

Newcastle Building Society has confirmed that they will but only through certain terms and conditions.

Manchester Building Society has decreased its loan proportion from 85 to 80% but only for homebuyers searching for a short-term deal.

Key workers and Graduates who were able to borrow 102% via mortgages from Scottish Widows Bank have to search for a 5% deposit.


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