Nationwide, the second biggest provider of mortgages in the UK, has increased the deposit homeowners need to have to qualify for the company's best rates.
According to the group, the maximum loan-to-value (LTV) ratio consumers need to qualify for its best deals have fallen from 90 per cent of a home's value to 75 per cent.
Speaking to the Press Association, a Nationwide spokeswoman, said: "The cost of funding in the market is higher and the housing market is cooling. Like a lot of lenders we have to adapt to these changes.
"It's to do with the market conditions at the moment," she continued.
The move means someone buying an average priced home of £197,244 will now have to find a deposit of £49,311 rather than one of £19,724.
Those having to borrow more – between 75 per cent and 95 per cent of the value of a home - will face a 0.2 per cent rise, an increase that will cancel out the impact of the last cut in the Bank of England's base interest rate.
Meanwhile, statistics from a Hometrack survey revealed that house prices have fallen for the fifth month in a row.
New Mortgage:- JST Financial, New Mortgage, Re-mortgage Specialists catering for good and adverse credit for UK homeowners