85% mortgages

Through the – well, do we call it a boom now? 100% mortgage and higher were commonplace and a ‘good’ deposit was 10% (the threshold where the better rates started appearing).

There were further thresholds at 15% deposit and 25% deposit and occasionally at 40% deposit, but that was unusual.

Since the crunch, 25% deposit has been pretty much essential and 40% good. Mortgages are available for those with smaller deposits, but at a premium.

C & G have been at the mainly 75% end of the scale for a while – but they are releasing products now at 85% range and a further set at the 90% range. They aren’t brilliant rates – above 6%, for the 90% products, but hey, it’s a start.

This is good – this could signal the start of competition for the low deposit end of the business and that is another sign of common sense starting to overcome panic in the mortgage market.

It also seems to be a signal that some people think the worst of the drop in house prices is over, and while it may not be totally bottomed out, it’s close enough for more lenders to take an interest in 90% lending.