From the 162 products originally available to borrowers without a deposit, the 100 per cent market has fallen back to just nine lenders and 39 products.
However the less risk averse choosing to remain in the high-LTV market - including Royal Bank of Scotland, NatWest and Abbey - have been hiking rates and fees to effectively compensate for the risk they take when lending to such a borrower.
Short-term deals currently domainate the ailing 100 per cent market. The lowest rates were found to have increased from 5.99 per cent in October to 6.14 per cent today, despite two Base Rate reductions, whilst fees have climbed over the £5,000 mark.
Mform.co.uk completed its 100 per cent line-up with Bristol & West, Scottish Widows Bank, Manchester, Ipswich, Stroud & Swindon and Tipton & Coseley, although the latter two won't lend such products to borrowers in Scotland.
Francis Ghiloni, mform.co.uk’s marketing and business development director, said: “The 100 per cent mortgage isn’t dead yet but borrowers who don’t have deposits now have significantly less choice and are having to pay more.
“However with house prices falling there is a real risk of negative equity for anyone taking a 100 per cent mortgage and anyone doing so should compare the deals carefully and rank them on a true cost basis.”
