The last 100% mortgage deals currently available to UK borrowers are being withdrawn. The Abbey bank is the last in a long line of banks to withdraw any offers that do not require a deposit.

Abbey's offers will cease on Wednesday 9 April, allowing time for the processing of application that have already been submitted by customers.

The decision has not come as much of a surprise as it completes the set of lenders who have followed the trend that began in February with Northern Rock, amongst others, withdrawing their 125% mortgage deals.

All lenders now require borrowers to place down a deposit for their homes if they want a mortgage.

"We are withdrawing our 100% loan to value mortgage until further notice," said an Abbey spokeswoman. "This is normal given the current market conditions and is in line with the recent moves by other lenders,"

"Abbey is seeing high demand following recent competitor moves," she explained. "In order to maintain high service levels on the business it writes, it is simplifying its mortgage range and re-pricing in some areas."

The credit crunch and the lack of funds available to lenders in the financial market have seen the mortgage market change dramatically in the last couple of months, as mortgage lenders have become unable to maintain their previous levels of lending.

The affects of the and the credit crunch were initially seen in the number of sub-prime and buy-to-let mortgages shrinking. But now, according to Moneyfacts, the financial information service, the affects have filtered into the ordinary residential home loan market.

This has manifested itself in a drop from 3,370 deals available in April 2007 to the modest 2,058 deals that are currently available; much of this drop can be accounted for by the loss of the 100% deals.

"There were 104 deals at 100% a year ago, so that market has now gone to nothing," said Andrew Hagger of Moneyfacts.

A prediction from Aaron Strutt, of the mortgage brokers Chase de Vere, stated that deposits of 10-15% would become the norm in a matter of weeks.

"The Abbey's 100% rates were so expensive compared to where they used to be, you would have had to really need the money to take the deal," he commented. "Even 95% loans are now becoming scarce or more expensive."

Halifax, another major lender, decided last week that it was time to impose a minimum 5% deposit on new borrowers. The lender also changed its range so that only those who can put down a large deposit, of 25% or more, can benefit from their best deals.

Are you struggling to get a decent mortgage deal? we suggest talking to an adviser for help in finding a mortgage. With all the current changes happening in the mortgage market an adviser can help you find the right mortgage for your circumstances.

Does this affect you? Where you hoping to get a 100% mortgage? Where do you think this will end, do you thinkg this will have a large effect on the housing market?

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