Borrowers boosted as mortgage deals return

Category: Mortgages
Date: 2/10/2010

Homebuyers have received a welcome boost after it was revealed the number of mortgages available in the market increased by almost 19% during January.

According to the latest research from Moneyfacts.co.uk, a grand total of 2,155 mortgage deals were on offer at the end of last month, 339 more than at the end of December.

The residential market received the greatest boost with the introduction of 311 products, while 28 additional buy-to-let deals were unveiled by providers.

The number of mortgages banks and building societies were willing and able to offer to homebuyers dropped considerably after the onset of the credit crisis, as funding difficulties took hold.

However, since reaching a low of just 1,209 products in April last year, more than 700 new deals have now been introduced.

Meanwhile, the bad weather saw activity in the housing market catch a winter cold during January.

According to the latest survey from the Royal Institution of Chartered Surveyors (RICS), buyer interest fell for the first time in 14 months, while new instructions to sell dropped for the first time in seven months.

However, surveyors still reported a rise in house prices, with expectations that further increases might be on the cards over the next few months at least.

"House prices are likely to rise in the short term but if more supply continues to come onto the market, it is possible that the market will run out of steam in the latter part of the year," said Ian Perry, RICS spokesperson.

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