From The BBC:
The number of mortgages available to buyers with a 5% deposit is shrinking fast, as lending is cut because of the credit crunch and falling house prices.
There are only 60 such deals currently available from lenders, according to the information service Moneyfacts.
That number is down from 384 at the start of April, and 860 a year ago.
Mortgages for 100% or more of a property’s value disappeared at the start of the year and the range of all mortgage deals has since shrunk.
“Every week or so another lender drops out of lending at 95%,” said Aaron Strutt of Chase de Vere mortgage brokers.
Those deals that require only a 5% deposit from a borrower are still being offered by some of the UK’s biggest lenders, such as the Nationwide, Abbey and the Halifax.
But Ray Boulger of mortgage broker John Charcol warned the offers might disappear altogether.
“For borrowers there is a danger of a much smaller choice of lenders if the situation in the banking market does not…