» Read the complete article

As the mortgage market continues to be set in deep freeze, it seems little is being done to help with those with little equity in their home or little deposits to spend.

According to statistics from Moneyfacts.co.uk, at the start of this week there were only 2040 mortgages in the UK, and of them only 1.4% were for those with only 5% equity, and only 8.2% were for those with 10% equity.

This is a drop of around 50% in little over a month, highlighting the speed at which sub prime mortgages are dwindling.

Michelle Slade, mortgage expert at Moneyfacts says: “Lenders are continuing to require a bigger deposit than ever before to get their best deal, with 95% deals virtually disappearing and 90% deals not far behind.”

This is tough reading for anyone who has limited collateral and is desperate to move. The only glimmer of good news lies in the fact that many of those unable to mortgage or remortgage will be stuck on the lender’s standard variable rate, which fell recently and could well fall again before 2009.

Of course there is always hope. Although the high LTV deals are shrinking, there are still nearly 30 mortgages for those who only have 5% equity – so if you think you could catch one of those deals talk to your adviser today and find out where you stand.

To Keep up with news and comments on the current adverse credit market please visit the Adverse Mortgage Blog.