Before the credit crunch first time buyers were able to get 100 percent and even 125 percent mortgages, but since the onset of the financial crisis lenders have been cutting back on their lending levels.

The lender has now launched a range of mortgages with relatively attractive interest rates for those that only have a deposit of 10 percent, which will prove to be great news for borrowers that do not have the 20 percent or more deposit that many lenders are looking for. First time buyers are amongst the groups that have suffered as a result of these4 demands from lenders, as many do not have a high enough deposit to get a competitive deal on their mortgages.

The deals are being made available to both existing customers that are looking to move home as well as new buyers, and it is hoped that an increasing number of lenders will follow suit and also start offering competitive deals to first time buyers who do not have a huge deposit to put down.

One customer who was looking for a mortgage said: “Since the onset of the global credit crunch it has become far harder for first time buyers to get onto the property ladder because of the huge deposits that lenders have been demanding. I hope that this move by Nationwide is the start of a new era where lenders will start offering affordable mortgages to those that do not have huge deposits to put down, as is the case with most first time buyers.”

90 percent mortgages available through Nationwide is a post from: Glitec

The lender will offer a range of loans of up to 90 percent, which many lenders are now unable to do, with some demanding deposits of between 25 and 40 percent from borrowers.

The fourteen billion pounds return to the mortgage market by Northern Rock means that after a year of turning customers away and sending them to rival lenders the company will now start offering mortgages on a large scale again.

For many buyers the decision has come as good news, as many that wanted to take advantage of falling house prices and get onto the property ladder have found that they cannot get a mortgage at all due to restricted mortgage products and tighter credit conditions or that they are expected to put down a huge deposit.

One government official stated: ‘There are a lot of sensible people out there earning good money who can pay a decent deposit but can’t get a mortgage. Northern Rock can move beyond 75%, perhaps up to 90, to get that kind of lending going again.’

However, there will be a number of strict regulations put into place with regards to the type of lending that the bank can get involved in, according to reports.

Following an economic mini-summit in Berlin recently, Prime Minister, Gordon Brown, said: ‘We have got to show we can restructure the banking system around sound principles that deliver the integrity and the trust and the openness and transparency that is essential for people to once again trust the banks.’

90 percent mortgages make a comeback with the Rock is a post from: Glitec