According to the Times:

The “Basel II” (pronounced “barl”), an international finance directive introduced in January last year, is the main reason that buyers with small deposits are being turned down for home loans.

(We like the pronunciation guide for cretins.) Basically, it links a bank's cash reserves to its right to lend at a given loan-to-value ratio. Low cash reserves equal demands for high deposits. The piece describes new proposed changes that may push deposit demands towards 60%... for anybody looking for a good deal.

Technorati Tags: mortgages