According to new figures compiled by Moneyfacts, low-deposit mortgages are becoming more and more scarce. Homebuyers looking for the best home mortgage, are finding that there are less Low loan to value mortgages available to them than there had been previously.

A BBC report utilised the figures indicates that just 66 loans with an LTV of 90 per cent or more are currently available. This has dropped from 586 in August and 1,197 nine months ago, representing the dramatic change in the mortgage market .The change is absolute when compared to the market at the height of the property boom. Numerous lenders offered 100 per cent mortgage loans at this time, with Northern Rock providing the ‘Together Mortgages’ that offered up to a whopping 125 per cent of the property value.Borrowers with a low deposit face the difficult prospect of not being able to get on (or back on) the property ladder, as many lenders will only offer high loan to value mortgages at uncompetitive rates. It pays to shop around via the internet or using an independent financial advisor to find the best deal.  Although they are scarce, there are still some good fixed rate mortgages around at the moment. 

Choosing a mortgage is a very important decision to make and it is important that you think carefully about repayment methods, interest rates and your needs in general before opting for a mortgage. Some lenders may have mortgages on offer that have unique features or deals attached to them but its important that you don’t let these convince you to choose that particular mortgage, your choice should be based on which mortgage suits your circumstances and property type best.

There are two main types of mortgages available and they are divided into two different methods of payment. Many people are overwhelmed by the amount of different lenders and mortgage variations there are out there, so the easiest way of choosing between them is start by looking at the two main methods of repayment and pick the one that is best for you. After this, you can then start looking at all of the different types of mortgages on offer.

The first mortgage repayment type is Repayment Mortgage. This can also be referred to as a “capital and interest loan” this is due to the repayments consisting of one part interest payment and one part capital (the debt). This method of payment requires you to pay both the interest and the capital until the whole of the loan has been paid off. The first few payments will be initially for the interest, but after time, the amount of interest will be lowered meaning that you will then be able to start paying off the capital as well.

The second type of mortgage repayment is Interest Only Mortgage. With this type of mortgage you make monthly repayments for the life of the mortgage that only covers the interest. In addition to this, you will have to pay money into a separate savings account, then when the term of your mortgage is up you can cash in your investments and use the money to pay off the loan. It is important to be careful when investing your money and to put it into a safe and recommended scheme.

After you have decided which payment method is best for you, you can then start to look at the different mortgage options that are available to you and for your specific needs. This is a good way to find something that’s more suited to you and perhaps even cheaper. One method that many people are resorting to during this time of financial unrest is to remortgage their house. Those that have done this have found that it can save them up to £80 a month.

The best thing that people can do is to search around and look into the different deals available on the market and then you can rest assured that you have the best deal available to you.

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After finding the best method of repayment, you can then start looking at all of the different types of mortgages on offer.

The second type of mortgage repayment is Interest Only Mortgage.

One method that many people are resorting to during this time of financial unrest is to remortgage their house.