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Borrowers need to find three times more for a deposit, compared with two years ago when the credit crunch began – a tough pill to swallow for those who are restricted to lower Loan To Value loans like self certifiable borrowers.

Average LTVs have fallen from 91% in August 2007, to 74% today, according to Moneyfacts. As a result, the average deposit required on a £150,000 mortgage has increased from £13,500 to £39,000.

For those who cannot prove their income this is bad news – since the credit crunch, lenders are demanding that those who do not earn a provable, regular monthly wage come up with even higher deposits than other borrowers.

The website says borrowers looking for fixed rate mortgage deals have seen an 83% drop in the number of deals available to those with just a 10% deposit. By comparison, the number of deals for those with a 40% deposit has increased by a staggering 2244% – lenders want borrowers to come up with even more security to make sure that the mortgage will stay above water and will remain a safe bet for the bank or building society.

Michelle Slade, analyst from Moneyfacts says: "A threefold increase in the size of the average deposit means many may have to defer their dreams of owning their own home for a number of years until they have saved more."

In these trying times the best person to talk to about a mortgage is a mortgage professional. They will be able to tell you exactly how much you will need to save to get hold of a mortgage, and will tell you the best way to save that amount. It might take time, and it may be tough, but a mortgage professional will only tell you the truth – no matter how hard it might be to take.

But there is always hope and there are always options for those who cannot prove their income. So talk to a mortgage professional today about your mortgage chances.

SOURCE: Moneyfacts, 10/08/09

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