The average deposit required by lenders for the month of October was 40% meaning those on lower incomes struggled to meet the criteria for the higher loan to value loans.
This has caused a dip in the number of buyers with lower incomes and causing purchase agreements to fall the fastest in the lowest price property brackets. Property purchase loans below £250,000 fell from 36,187 in September to 35,772 in October.
The quantity of loans for residential purchases fell again for the month of October, as lenders ease mortgages for the wealthiest of borrowers.
First time buyers with a deposit6 of 10% or less accounted for just 1% of total house purchases in October when compared with 13% in October 2007.
As a result, a disproportionate of lending is given to wealthier borrowers with higher value homes.