'Improved availability of cheap mortgages needed'

Banks need to be more willing to lend if the availability of cheap mortgages is to improve, it has been suggested.

According to Catherine Hearnden, director of MyMortgageDirect, increased loan-to-value deals are entering the market, but continued support is still needed.

"People are beginning to realise that if they want 90 per cent, they must pay for it," she stated.

"There is an emerging realism among people that if you have not got a huge deposit, then you must pay more on your mortgage."

Ms Hearnden said loan-to-values must continue to increase and mortgage rates have to become more attractive.

Newcastle Building Society recently launched a range of new products designed to help people with ten per cent deposits get onto the housing ladder.

The products offer a maximum loan-to-value of 90 per cent and include the options of a two-year tracker at 4.60 per cent or a two-year fixed rate at 5.95 per cent.

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2010-03-01 13:05:04 © Moneyextra.com