moneysupermarket.com: Nationwide 25 per cent deposit

Commenting on Nationwide raising the minimum required deposit to 25 per cent for homeowners looking to access its best deals, Louise Cuming, head of mortgages at price comparison site moneysupermarket.com, said: "It was only a matter of time before more of this happened. Northern Rock, understandably, has already taken this approach, and Nationwide has now followed suit, but it definitely won't be the last to do so.

"This sort of restricted lending has been happening in the buy-to-let market for a while. The fact it is creeping into mainstream lending reflects the desire among some of the financial services industry to rein their lending in, and concentrate on boosting savings instead.

"The flow of money into the mortgage market is slowing, so we are heading for a correction that may ultimately be good for the long-term health of the economy. Unfortunately it is the first-time buyer who will suffer now, due in part to the cavalier approach to lending of some over the past few years.

"Customers with a spotless credit record and, now, a hefty deposit will find themselves wooed with the best deals."