The number of mortgage products on the market is slowly beginning to increase, with borrowers with at least a 25% deposit having the most deals from which to choose.
The size of the residential mortgage market reached a low of just 1,209 products at the beginning of April, 90% down on the peak of 11,951 products that were available in July 2007, according to research from Moneyfacts.co.uk.
In recent months, however, lenders have started to return to the market, resulting in 1,392 products being available at the start of September.
However, with caution very much in mind, it is deals for borrowers with a deposit of 25% or more that are increasingly being put on offer.
Borrowers with a 10% deposit have also seen their options gradually increase, but are having to pay a hefty price for their lack of equity.
Indeed, the best deal on offer to a borrower with a 10% deposit is 2.00% higher than that available to those with a 40% deposit, adding £170 per month to the cost of a £150,000 mortgage.
"The lack of any real competition in the market is still having a huge impact," said Michelle Slade, spokesperson for Moneyfacts.co.uk. "None of the big lenders seem to want to be the first to cut rates as they are worried they will be swamped with applications.
"Lenders may be open for business, but we need more bold moves from some of the bigger players before borrowers start to see any real benefit."
Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.
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