July 13, 2009
UK Mortgage Numbers Fall
The amount of mortgages available to borrowers has fallen dramatically over the last year as the credit crunch continues to take its toll.
Figures from moneysupermarket.com show the number of mortgage products available to consumers has slowly been decreasing, with only 2,282 products now available, compared to 5,040 this time last year, and 27,962 in July 2007.
It also found that the number of products available for first-time buyers is even more dire, with only 1,195 on the market for those who have never taken out a mortgage.
Louise Cuming, head of mortgages at moneysupermarket.com says: “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.”
There is no doubt about it, the chances of getting hold of a mortgage have been drastically reduced from this time two years ago. But that is not to say that it is impossible to get hold of a mortgage – 2,282 products is 2,281 more than you need. Some even say that there was too many mortgages on offer a few years ago, and that might be so, but as long as a mortgage adviser can find you the one deal that is right for you then it doesn't matter how many products are on offer.
Advisers are working harder than ever to place their clients, but that's no concern of yours. Just make sure that your finances are in order, that your credit score is as good as it can be and all your responsibilities are up to date. Then call an adviser and let them do the hard work in finding you a mortgage that fits.
SOURCE: Moneysupermarket.com, 06/07/09
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