We look at the return of the low deposit mortgage in 2010

As anyone who tried to find themselves an affordable mortgage in the few years in the run up to 2010 will know, unless you had huge sums of money tucked away in your bank account for a rainy day you were going to be plumb out of luck.

With banks taking a major hit thanks to 100% mortgages (and in some extreme cases, even 125% mortgages) in the years just before the recession it was always likely that they would take a step backwards and re-evaluate the situation before deciding how best to lure customers back.

And that's exactly what happened with the long awaited return of the low deposit mortgage in 2010 - at least in some cases. The banks had certainly learned enough to teach them to be more than a little wary when it came to doling out cheap, easy money to all comers, so it was perhaps expected that they would retain their best deals for those who could afford higher deposits.

Even now, it's tough to find the best rates without having a deposit of around 25% of the value of the mortgage, but it's hard to argue against this being the most sensible approach for both the bankers and borrowers. Just think how lucky you are not to have been landed with a 100% or higher mortgage back in the boom days only to find that your house isn't worth anything close to the same value now, and your wages have taken a tumble.

It's certainly not a nice thought, but it's the reality for many people these days. Hopefully the fact that low deposit mortgages are back, but seem to be handled in a much more sensible way will bode well for the future of the economy - and it might even teach borrowers to be a little bit more responsible when it comes to evaluating what they can and can't afford!

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