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We look at the increase in 5 per cent deposit mortgages since 2010

Following the credit crunch of 2008, most financial institutions immediately locked down the number of low deposit mortgages they had on offer so as to ensure they didn't leave themselves any more exposed to toxic debt than they needed to. Before things went bad, it seemed like anyone could get a mortgage with little or no deposit, which certainly didn't do the economy, or the banks for that matter, much good.

If it can be said that there was anything good to come from the global financial collapse, it is probably that banks have now learned to be a little bit more responsible when handing out mortgages.

Since 2008 we have seen the average deposit requirement for a new mortgage increase to as much as forty five per cent with some lenders, before dropping back to more reasonable levels in order to try to stimulate the stagnant housing market once again.

The last months, however, have seen things slowly creeping back to the way they were before, all be it in a much more closely monitored manner. There has been an increase in the number of 5 per cent deposit mortgages since 2010 in the British financial market, and right now there are a wide number of them available for new home owners.

The problem with such low deposit mortgages in the past was that many people simply couldn't afford their monthly repayments, even when times were good. They were taking out mortgages and hoping to scrape by for a couple of years before selling the house for a profit and buying somewhere else with the proceeds. This obviously backfired with the collapse of the housing market, but now that the cost of houses is significantly lower, banks aren't taking as much of a risk when it comes to doling out the 5 per cent deposit mortgages.

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