The return of low-deposit mortgages

This personal finance story is of interest; it implies that mortgage lenders in the housing market can see the future direction of travel, after the Stamp Duty holiday ends, and are gearing up to find ways of allowing more buyers access to the market.

In this case, it means reducing the deposit requirement - and if we return to a situation where a 10% deposit is required, instead of 15 or 20%, then it's likely to bolster the market. A fall in the deposit needed implies an increase in the loan-to-valuation ratio prevalent in the market for housing finance.

That said, others would surmise that we're in danger of returning to the reckless lending of the pre-financial crisis era, or that it tells us something about a lack of affordability in the market with average house prices in many areas a sizeable multiple of income.

Our revision playlist on housing market economics can be found here