18-01-2008
First-time buyers face rising deposit costs
News by Adfero for Simply Business - independent providers of business insurance, business finance, landlord insurance, buy-to-let mortgages & commercial mortgages.
First-time buyers in London are being forced to increase the size of their deposits, it has been claimed.
According to reports by the Evening Standard, a number of UK lenders have increased the size of their minimum deposit from five to ten per cent.
Indeed, Alliance & Leicester has taken the decision to reduce its maximum loan-to-value (LTV) from 95 per cent to 90 per cent.
"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," said a representative for Alliance & Leicester.
The Evening Standard believes that, given the average cost of a property in London is now approximately £350,000, a first-time buyer purchasing a property at this price would need to generate an initial sum of £35,000.
In related financial news, data released by MoneyExpert.com has found that personal loan interest rates have increased to nearly 15 per cent.
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