A leading lender plans to launch a 100% mortgage aimed at would-be first-time buyers who cannot save for a deposit, the first since the 2008 financial crisis.

Standard home loans where the borrower does not have to put down a deposit used to be fairly commonplace but the last was axed in the wake of the financial crisis.

However, Skipton Building Society is getting ready to launch a mortgage targeting those “trapped in rental cycles” and who do not have access to “the bank of mum and dad,” and so are therefore unable to save up enough for a home deposit.

Assembly research shows more than 200 banks have shut in Wales since 2008, leaving towns such as Newcastle Emlyn and Hay-on-Wye without any.

Banc Cambria would work like a regular bank, with branches across the country, but would be owned by its members.

First Minister Mark Drakeford pledged to set up a community bank in his Welsh Labour leadership campaign.

The Public Bank for Wales Action Group, working with the Community Savings Bank Association, wants to fill gaps left by the departing high street banks.

Banc Cambria board member Mark Hooper told BBC Sunday Politics Wales: “You will be able to have a current account, businesses will be able to have accounts, there’ll be mortgages provided so people will be able to buy homes.

“We’ll also be making sure there’s a superb online presence – people like using their apps. It will be in Welsh and English.”

Mr Hooper hopes for Welsh Government support and wants to be able to start talking about its first investor soon, as it continues to seek funding.

It would then be able to set out a timescale for applying for a banking licence and opening the first branches.

Cost of ten-year mortgages starts to rise The cost of 10-year fixed rate mortgages is edging up from historic lows of under 3pc.

First Direct has this week increased its market-leading 2.89pc deal to 3.09pc. It was the first ever 10-year fix to fall below 3pc and has been available since February. It was available for those with a minimum 35pc deposit or 35pc equity in their property.

What is not clear is whether First Direct’s repricing of the deal – which sees the rate jump a considerable 7pc – indicates a wider trend of fixed-rate deals beginning to creep back up from all-time lows. Another possibility is that the bank, part of HSBC, has merely exhausted the supply of funds it could lend at that rate.

Few other lenders priced their 10-year fixed rates at under 3pc to compete with this best-buy rate. One exception was Nationwide Building Society which matched the rate, only for borrowers with 40pc deposit. It even bettered the deal slightly to 2.79pc for its existing borrowers.

Older home owners will be told to take mortgages for life or leave their homes under plans to tackle Britain’s interest-only mortgage crisis.

Several major banks will propose “lifetime” contracts to borrowers in their 50s and 60s who face a shortfall when their mortgage ends, The Telegraph understands.

The lenders will allow customers to repay just the interest on their debts until they die, at which point the properties will be sold and a large chunk of the proceeds passed to the bank.

Around 130,00 interest-only mortgages are due to expire every year until 2020, with half facing a shortfall of £71,000 on average, according to the City watchdog. One in 10 borrowers have no repayment plan in place at all.

“New rules on mortgage lending that could prove problematic for those trying to get on the property ladder are due to be announced tomorrow.

The Financial Services Authority (FSA) is expected to say that lenders will be unable to agree a mortgage unless a homeowner can repay it before they are 70 or 75, the Daily Mail said.

This could cause difficulties for people in their 50s trying to get a mortgage, as most loan terms are for 25 years.

David Hollingsworth, from mortgage advisers London & Country, told the newspaper that lenders would demand mortgages are paid off by the time people were 70 or 75, and said that banks and building societies were already starting to tighten their lending criteria.”

Don’t grow old and if you must don’t do it in rural England!