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Lenders accepting lower deposits on loans
New research has found there are a growing number of lenders willing to accept smaller deposits for loans.
A study by Moneyfacts has found there has been a seven per cent increase in the number of mortgage deals available overall.
Some 38 of these secured loan products introduced in April require less than a 20 per cent deposit, with 14 needing only a 15 per cent deposit to access the funds.
According to organisation, there was even an increase in products needing as low as a ten or five per cent deposit.
Darren Cook, head of press and PR at Moneyfacts, said with more mortgages available at higher loan to values, this could be "a sign that a number of banks are regaining some confidence within the housing market."
He added: "We are seeing a number of mortgage providers slowing reducing their strict criteria and increasing the number of products available to those that can raise a lower deposit, albeit at a higher initial interest rate."
Alliance & Leicester recently urged homeowners in the UK to switch to a fixed-rate mortgage to take advantage of the 0.5 per cent Bank of England base rate.