Minimum deposit percentages for re-mortgages during the recession
Published on Friday, 18th of February 2011 by Mike Roberts. This article has previously been viewed 297 times and was last read on Saturday, 19th of May 2012 at 06:19:51.
Prior to the current recession, banks & building societies were granting mortgages with a minimum of 5% deposit, sometimes with no deposit, and sometimes (Northern Rock) actually giving the house buyer a 110% or 120% mortgage! Now that normaility has returned, deposits required to secure a mortgage are now in the regios on 20%-25% of the sum borrowed. This is one of the main reasons why house prices have fallen from their historic high of 3 years ago as people struggle to find the necessary deposit required to enable them to purchase their 1st home or, in some cases, for them to move up the property ladder.
