March 23, 2010
Mortgage Products Coming Back With A Bang
New figures suggest that the number of new mortgages on the market are coming back with a bang – from a low of just 1,209 mortgages in April 2009 there are now 2,053 products today, a 70% increase.
According to Moneyfacts.co.uk, there has been a significant increase in the number of mortgages available to UK borrowers since the start of the year. Furthermore, it is the higher loan to value mortgages that are witnessing the biggest percentage increases as lenders continue to relax their credit criteria.
It says there has been a 333% increase in the number of 95% LTV since April 2009 and an 114% increase in 90% LTV loans during the same period. There has also been a 169% increase in 80% LTV loans and a 21% increase in 60% LTV mortgages.
Michelle Slade at Moneyfacts says: “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. Lenders are becoming more accommodating with their lending criteria, which bodes well for increasing the competitiveness of the mortgage market.
“For a long time, borrowers with a small deposit have had few options. Many will be hoping the positive trend continues, with increased competition reducing the cost of high LTV mortgages."
To have the chance to choose from as many of these 2,053 products as possible you need to go to a whole of market mortgage broker – the more choice you have the better the chance you have of finding the right loan.
SOURCE: Moneyfacts.co.uk, 16/03/10
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