Mortgage markets ‘responding to affordability issues’

With less people able to pay a deposit up front as they aim to get a foot on the housing ladder, the number of deals that do not demand a deposit has more than doubled over the course of the last 12 months.

Figures from MoneyExpert.com, demonstrate that in May of last year there were 60 deposit-free deals on the market, by now there are 127 such packages available.

“Affordability is the buzz word at the moment as lenders look to find new ways to bring first-time buyers into the property market,” said Sean Gardener, MoneyExpert.com’s chief executive.

“Offering 100 per cent mortgages is another example of this, as saving for a deposit on even the average property can take years.”

Last month, the homelessness charity Shelter called on the government to provide more social housing for those people who cannot afford to rent privately or buy a house of their own in the UK.