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Charcol: It's getting harder to buy a home

Prospective home owners who do not have enough funds for a deposit are being pushed off the property ladder, mortgage experts at John Charcol have said.

According to analyst Katie Tucker, the current "mass withdrawal" of 100 per cent mortgages from high street lenders is due to a "readjustment" of the market.

In turn, this is due to lenders' tightening their criteria for loans, following the ongoing credit crunch.

However, she also pointed out that high loan to value home loans were still available from some firms - suggesting that those who do not have savings or immediate funds available should continue to shop around.

Ms Tucker added: "First time buyers with no deposit, or existing debt will find it difficult to buy now - the accommodating lending criteria of the last decade has allowed many people to buy who otherwise wouldn't have been able to, which has helped push property prices through the roof."

"I expect to see more parents trying to raise money from their own homes to gift as a deposit, and to see more lenders to find less risky ways to help."

Cheltenham & Gloucester became the latest mortgage lender to take its 100 per cent products off the market earlier this week.

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