Building society Nationwide have announced that new borrowers will have to have to find increased minimum deposits for new home loans.

The building society, which is the second largest mortgage lender in the UK providing  about one in 10 UK mortgages, has said that borrowers will require 10 per cent on most of its mortgage products.

The news is part of a continued trend of lenders restricting terms on their products and requiring bigger deposits in the face of a slowing housing market and economy.

Nationwide said it will only lend new fixed-rate and tracker mortgages for 90 percent of the property, but will continue to offer 95 percent loans for first-time borrowers choosing a three-year fixed-rate or tracker deal. It also cut the maximum loan size to 500,000 pounds for new customers.

The building society said new mortgages on its base mortgage rate will only be available directly -- cutting out brokers -- and a 25 percent deposit is needed.

The changes will allow the lender "to maintain control of the volume of business the society is attracting ... in a controlled and prudent way", it said.