One of the country’s highest-profile mortgage lenders, HSBC, is restricting loans on apartments from today.
Only buyers of flats who have a 15 per cent deposit will be eligible for a HSBC mortgage product, and that’s 20 per cent if the apartment is a new-build.
This brings to an end the relative relaxation of HSBC’s mortgage lending, which until today has allowed 10 per cent deposits during much of the Coronavirus period.
Earlier this month Nationwide instigated a new obstacle for buyers applying for a 90 per cent mortgage - they now have to prove that no more than a quarter of their deposit has been provided by their parents.
Lloyds, too, has withdrawn its 100 per cent 'Bank of Mum and Dad' mortgage for borrowers whose parents are willing to tie up their savings for three years.
Moneyfacts says there are now fewer than 50 deals on offer for borrowers with a 10 per cent deposit compared; there were over 750 a year ago.