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Halifax raises 'best rates' deposits minimum

The UK's biggest mortgage loans lender, Halifax, has upped its minimum deposit level for customers to get the lowest repayment rates.

Late last week, the firm said that loans borrowers would now need to pay for 25 per cent of their property up front in order to get the most attractively-priced mortgages on offer.

Moreover, the minimum deposit required for all deals has also increased from three per cent to five per cent.

Halifax's move is the latest in a series of signs from lenders that cash flow worries stemming from the credit crunch are taking hold.

The financial crisis has led to nervous banks becoming much less willing to loan each other funds - effectively shutting off a crucial revenue stream for many.

These worries have now been passed on to the consumer, in the form of tougher lending conditions and higher mortgage loan repayment rates.

Last week, First Direct and the Co-op both suspended part of their fixed rate mortgage offers - further signs that the UK loans market is becoming tougher for consumers to navigate.

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