Number of mortgage deals continues to climb

Category: Mortgages
Date: 2/24/2010

The number of residential mortgage loans in January may have been the lowest since 2002, but there are currently more deals available than at any point during last year, Moneyfacts.co.uk figures show.

Just 35,000 new mortgages were approved by the members of British Bankers' Association in January, the lowest monthly total for eight and a half years.

The association blamed the downturn on a combination of a traditional new year slump, severe weather conditions and a rush of homebuyers forcing through agreements before the end of the stamp duty holiday.

However, potential homeowners, or those looking to move now have more mortgage products to choose from for more than 12 months.

Currently, there are 2,019 deals in the residential market, with many lenders dipping their toes in the higher loan-to-value sector once more – a boost for first time buyers.

A number of mortgage deals requiring just a ten per cent deposit have been launched since the beginning of the year.

"There is an indication that competition within the mortgage market is getting stronger and more products are being made available to customers with smaller deposits, but these are still priced at a premium," commented Darren Cook, spokesperson for Moneyfacts.co.uk

"With product numbers on the increase, the question of quantity over quality arises. But this mortgage market dictates and history shows us that with quantity comes quality and open competition on interest rates."

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