March 17, 2010
70% More Mortgage Products Available Now
There are currently 70% more mortgage deals on offer than there were at the market's nadir last April.
According to data website Moneyfacts, at the height of the mortgage drought on April 1st there were just 1,209 products out there, compared to over 13,000 before the credit crisis hit in 2007.
Today there are 2,053 deals on offer – a 70% increase since last April and a 28% increase since the start of this year alone.
Moneyfacts says that the types of mortgage products which have seen the biggest percentage change are the higher loan-to-value deals, as lenders continue to relax their credit criteria.
Michelle Slade, spokesperson for Moneyfacts.co.uk said:
“By increasing the numbers of mortgages, lenders are showing that they are open for business.
“Increased availability brings increased competition and the mortgage market is finally seeing some of the most competitive deals of the last few years.
“Lenders are becoming more accommodating with their lending criteria, which bodes well for increasing the competitiveness of the mortgage market.
“It is pleasing to see that the average mortgage rate continues to fall, while at the same time deposit requirements are easing.
“House prices appear to have bottomed out, meaning higher LTV mortgages are a less risky option for lenders.
“For a long time, borrowers with a small deposit have had few options. Many will be hoping the positive trend continues, with increased competition reducing the cost of high LTV mortgages.
“Only then will first-time buyers, many of whom are currently priced out of the market, be able to return.”