House key

This month has seen some big shifts in mortgages and it’s an indicator of things to come.

Several big lenders have withdrawn their 90% loan-to-value (LTV) deals (where you put down a 10% deposit for the property and borrow the other 90%).

A closer look at the data from comparison site reveals that a significant number of 95% LTV deals have also been withdrawn in the last month.

Apart from Barclays’ Family Springboard mortgage (where a family or friend puts down a 10% deposit for five years, which they can get back with interest if you keep up with repayments), the 100% mortgages have already all but disappeared.

But during the same period, the number of 85% LTV deals have gone up from 286 at the beginning of this month to 338 as of 10 June.

Mortgage lenders are clearly becoming more cautious and lending smaller amounts as a result.

Unfortunately for first time buyers, that means a smaller number of options if they need to apply for a mortgage – unless they can stump up a bigger deposit.

With falling house prices, it’s another good reason to wait.