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As consumers try to find flexible mortgages they can afford, they are quickly learning that changing LTV ratios mean that they will need to have a larger down payment to get an approval for a new flexible mortgage. This means that many will have to defer their dreams of getting a new home until they can afford to get a flexible mortgage with better terms. As a result, the flexible mortgage market is suffering.

Robin Amlot with MoneyExtra stated, “Mortgage interest rates, in general, are cheaper now than they have been for more than a year but it’s impossible for many potential buyers to find a lender because of the size of deposit they’re being asked to provide.”

“Banks are more likely to be able to cross-sell other profitable products to customers earning a reasonable amount, and, in many cases, persuade them to migrate to added value current accounts,” said David Black with the financial firm Defaqto. “It’s disappointing to see Nat-ionwide reduce their rates for those current account customers depositing between £1,000 and £1,499 each month and it’s also somewhat against the current trend, given that Lloyds TSB recently upped their rate from 4.25 to 6 per cent.”

Related reading: Flexible Mortgages