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Mortgage product availability records rise

Mortgage product availability records rise

Category: Mortgages

Updated: 16/03/2010
First Published: 16/03/2010

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.
Lenders are showing they 'are open for business,' with figures from showing that the number of mortgage products has increased by 70 per cent since hitting a low last April.

The financial crisis resulted in a significant loss of products, with the market shrinking to 1,209 residential mortgage deals by 1 April 2009.

Since that point, the number of options for consumers looking to buy a home has increased steadily, with 2,053 mortgages available today.

Encouragingly, a significant amount of these new products have come in the higher-loan-value (LTV) ranges, meaning those with a small deposit – accounting for a high proportion of first time buyers – have a far more varied selection of mortgages to choose from.

There are currently 152 products that require only a ten per cent deposit, a marked improvement on the 71 such deals available in April 2009 and the 114 in January 2010.

Similarly, the number of 85 per cent LTV mortgages has risen from 186 in April last year to 260 in January and 345 currently.

There are even 13 deals that require just a five per cent deposit, although rates usually reflect this.

"By increasing the numbers of mortgages, lenders are showing that they are open for business. Increased availability brings increased competition and the mortgage market is finally seeing some of the most competitive deals of the last few years," Michelle Slade, spokesperson for commented.

"Lenders are becoming more accommodating with their lending criteria, which bodes well for increasing the competitiveness of the mortgage market.

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