The era of the 95% - 125% plus mortgage is near an end ... no longer can first time buyers walk into a high street bank or building society without a deposit to buy their new home.
Things are reverting back to as things used to be, where the first time buyer needed to save up a substantial amount of money to put down on the purchase of the property.
So what does this mean for first time buyers?
In a nutshell, you won't be able to borrow the whole amount needed to buy your new home - you'll have to put aside money to save for your house deposit.
There is good news though - having say a 10% deposit for your new home will mean that there is equity in the property ... people throughout the UK who took out 125% mortgages are now in the position where they have no equity in their homes.
Many lenders in the home loan market place are now reducing their loan to value, also known as LTV from 100% of the purchase price right down to 90% - this means you would need to have a deposit of at least 10% to buy your new home ... for example, say your new home costs £100,000.00 - you would need a £10,000.00 deposit.
2008 will no doubt see more and more youngsters staying on at home with their parents and no doubt if they are currently renting, saving for the long term will be difficult.
For the best mortgage deals and first time buyers mortgage advice or information on opening a savings account with a view to saving for your deposit - visit Want 2 Buy It.co.uk today.
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