The global recession has certainly done a number on anyone who had planned on buying their first home at any time in the near future. The unchecked lending of several of the world's biggest financial institutions has crippled the ability of regular banks to offer reasonably priced mortgages to first time buyers for the most part.
The days of hundred per cent and higher mortgages are certainly gone, and that's no bad thing given the level of toxic debt created by them, but things are certainly starting to look up a little for anyone seeking low deposit mortgages in 2011.
After the slump of the past couple of years, it is encouraging to see an increase in the amount of banks and financial institutions who are now offering mortgages to customers for deposit rates of ten to fifteen per cent, down considerably from some of the incredibly bloated terms available in the immediate aftermath of the financial meltdown in 2009 and 2010.
British lender, Newcastle Building Society, is one such institution who are pushing this new lower deposit rate for their mortgages. They currently offer their customers a tracker mortgage over two years as well as fixed rate deals over the same time period requiring a relatively moderate ten per cent deposit.
But more importantly than the initial deposit, is the fact that interest rates on mortgages and loans have gradually begun to take the long trip back towards normality. It will still be some time before things reach the same level we were at prior to 2008, but things are certainly looking up - especially for first time buyers or borrowers.