Mortgages - Woolwich raises deposit requirement

Effective Thursday, the Woolwich will require borrowers to stump up a deposit of a minimum 10% as it lowers its maximum LTV (loan to value) rate from 95% to 90%.

The credit crunch is being blamed as the lender adopts what it describes as a more prudent lending policy. Its initiative comes after previous moves from the likes of Britannia, Alliance & Leicester and the Co-op.

All loans currently allowing for a 95% LTV - that is, the bank's 5-year fixed rate and tracker rate deals, as well as its standard variable rate - will now only allow a maximum LTV of 90%.

07 May 2008 © Moneyextra.com

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