Credit crunch 'reducing options for secured loans seekers'

Category: Loans
Date: 10/20/2008 8:33:51 AM

The credit crunch has seen the options for those seeking secured loans significantly reduced, research has found.

Moneyfacts.co.uk has revealed that the total number of mortgage products available has fallen to 3,281 - the lowest level in over a year.

However, mortgage expert at the site Darren Cook notes: "Choice may be reducing, but there are still enough products out there for borrowers to try and find a suitable deal that suits individual circumstances."

Those who do hope to be granted a secured loan may find that they have to pay a larger deposit, as the number of mortgages with a maximum loan to value (LTV) of 60 per cent was found to have risen by 84 per cent.

In contrast, those with an LTV of 75 per cent, 90 per cent and 95 per cent are increasingly scarce.

This week housebuilder Barratt Homes argued that there are still plenty of competitive options available.