[1] The credit crunch is starting to afect mortgage borrowers who are unable to muster a big deposit.  Nationwide has told its customers wanting a loan of more than 75% of the properties value that they will pay higher interest rates to reflect the increased risks involved.

 Nationwide increased its mortgages for home buyers wanting to borrow 75% or more by 0.2%.

 The move will undoubtedly hit first time buyers the hardest especially when you consider that the UK average deposit for a home is 20%.

 To put things into perspective, on a Nationwide home loan for £150,000 a borrower would need to save £37,500 to get the most competitive rates of 5.68.  Last week that deposit would have been £15,000 to get the same rate.