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Mortgage numbers on the rise

Mortgage numbers on the rise

Category: Mortgages

Updated: 30/11/2010
First Published: 30/11/2010

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

The number of mortgage products has grown significantly over the last year, figures from have revealed.

The greatest gains have been seen in the mid loan-to-value (LTV) range, although the number of deals available to those with smaller deposits has also risen.

Potential buyers with a 20% deposit have seen the number of mortgages available to them increase from 153 to 384 over the last 12 months – a rise of 151%.

In addition, the 85% LTV has expanded rapidly; there are 470 mortgage products in this tier today, compared with 254 a year ago.

The 90% LTV tier – a common choice for first time buyers – has also seen numbers rise. There are currently 204 such mortgages, up from 116 in December 2009, although the rates charged on these deals remain stubbornly high.

Mortgage products in the 75% LTV are plentiful and numbers have risen from 586 to 895 in the last year.

"The best deals are being offered to borrowers with at least a 25% deposit as lenders vie to attract the more asset rich borrower," commented Michelle Slade, spokesperson for

"Borrowers with smaller deposits are seeing signs of improvement, but the rates on offer to borrowers with just a 10% deposit remain high."

Over the same period, rates have fallen, with the average two (4.40%), three (5.01%) and five year fixed rates (5.29%) all standing at the lowest level seen since Moneyfacts records began in 1988.

Despite this, latest figures from the Bank of England show that for the sixth month in a row mortgage approval numbers fell.

"Many borrowers have reverted to their lenders' standard variable rate, with rates as low as 2.50%," commented Slade.

"While average fixed rates may be at an all time low, they are still uncompetitive in comparison.

"A rise in Bank Base Rate still appears elusive and borrowers are opting to make the most of low mortgage repayments while they can."

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