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Five per cent mortgage options disappearing
6 October 2008 16:39
Mortgages available to potential buyers with a five per cent deposit have all but disappeared, it has been reported.
An article on the BBC news website points out that there are now only 60 such deals left on the market - down from nearly 400 in April, and close to 900 a year ago.
Those mortgages that offered 100 per cent of a home's value or more disappeared shortly after New Year as the property finance market contracted.
Ray Boulger, of the mortgage broker John Charcol, said that for borrowers there is a danger of a much smaller choice of lenders being available in the future if the financial sector does not improve in the very near future.
Five per cent mortgages are still being offered by Nationwide, Abbey and Halifax but it is now only a question of time before these too disappear.
Throughout August this year, new mortgage lending was at five per cent of what it had been in July.
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