Number of mortgage products rise

Posted on July 5th, 2011 | Categories - Mortgages

The number of mortgage products available to consumers in the UK has risen to the highest level since November 2008.

The survey by Moneyfacts showed that the availability of mortgage products was increasing and more deals available for borrowers with just a 10% deposit. At the start of July there were 261 mortgage deals available for people with deposits of 10%, an increase from the same time last year when only 176 mortgage products were available.

Homebuyers with a deposit of 25% or more still have the most mortgage products to choose from and benefit from the lowest interest rates.

However, the survey also showed that there has been no return to the days of 100% mortgages and for those with a deposit of between 5% and 10% the number of mortgage deals were limited to just a small handful.

Competition

The larger number of mortgage products available and increased competition amongst lenders would seem to be one reason behind a recent drop in interest rates for new mortgage deals.

Just a week ago Moneyfacts reported that the average interest rate for a new mortgage deal had fallen to its lowest level for 23 years.

A Moneyfacts spokesperson said, “Lenders appear to be applying the recent cuts equally across all loan-to-value tiers, which is good news for first-time buyers, as previously cuts were only being applied to the lower loan-to-value bands.”