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Mortgage Numbers Drop To Lowest Level On Record

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I couldn't find this... tried a search, which gave an error and searching using google didn't show a similar topic.

Thought it might be of interest


The number of mortgage products on the market has dropped to its lowest level on record as home owners have just over 2,000 deals to choose from.

Numbers have dried up so much during the credit crisis that borrowers have been left with just 2,282 deals.

First-time buyers have even less choice, with just 1,195 products available, according to price comparison website Moneysupermarket.com.

It compares to the height of the property boom in August 2007 when home owners enjoyed a choice of more than 30,000 mortgage deals.

At that time, first time buyers could also pick from a much larger selection of almost 20,000 deals.

Louise Cuming, head of mortgages at Moneysupermarket.com, said: "Despite all the recent initiatives from the Government and Bank of England, the lack of credit is an ongoing problem.

"This will continue to hinder any sustainable recovery in the housing market so until this changes, and more mortgages become available, house price growth will remain muted at best, with further falls possible, and many borrowers will struggle to get a mortgage. "Unfortunately it is doubtful that the number of products will increase significantly any time soon. Lenders are competing to attract the same borrowers - those that are seen to offer the least risk to the bank – and there is no sign of this trend changing."

Richard Morea, of mortgage brokers London & Country, said: "There is no getting away from it, the mortgage market has shrunk considerably."

However, he added there was a small glimmer of hope for borrowers as lenders are showing more willing to lend with those with a smaller deposit.

Mr Morea explained: "Mortgage numbers are down but the availability to those with a small deposit has improved.

"Lenders have been more willing to lend, but to those with a 25 per cent deposit rather than a 40 per cent one. They are also showing more willing to lend at the higher loan to values."

The figures calculated by Moneysupermarket.com include residential and buy-to-let deals as well as so-called sub-prime mortgages aimed at those with a poor credit history.

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