Huge drop in range of mortgage deals available
There has been a huge drop in the range of mortgage deals that are available in the UK according to a recent report, which suggests that the number of different mortgage deals has dropped by two thirds since the onset of the global credit crunch. Over recent months more and more lenders have been taking various deals off the shelves, such as 100% mortgages and various other special mortgage types.
The buy to let and sub-prime sectors have been severely hit by this drop in the range of mortgages, with far less choice for consumers in this group. First time buyers have also had to bear the brunt, with specialist deals such as 100% mortgages disappearing from the shelves, and many lenders looking for a far higher deposit than the traditional 5% for those that want to access the most competitive and affordable rates.
Last July, before the credit crunch took a hold in the UK, there were around 15,599 different mortgage deals on offer in the UK, enabling consumers to enjoy plenty of choice and easier access to an affordable mortgage. However, this figure has now plunged to just 5725, and this has resulted from a myriad of lenders quickly withdrawing deals in order to protect themselves from potential risk as well as a result of being unable to secure the necessary finance that they need to fund these mortgages.
The housing and mortgage sectors have taken a real hit over recent months, and a recent report has shown that there has been a large drop in the level of mortgage applications approved for February, as well as a reduction in the number of people expressing an interest in purchasing at present.
Recent additions:
- Disaster could lie ahead for those on interest only mortgages
- Charity concerns over sale and rent back firms
- A five year fix could work out cheaper than a two year one
- Take fast action to get a good mortgage deal
- Mortgage fraud levels up to £700 million a year
Related Posts
Brokers complain over lack of access to mortgage deals
Whilst the global cr4edit crunch has hit all sectors of the mortgage industry extremely hard over recent months the news has been dominated by stories about how lenders and consumers have really suffered as a result of the effects of the credit squeeze. Lenders have found it increasingly hard to get finance for their mortgage lending operations, and therefore have had to tighten credit conditions, increase the cost of borrowing, and remove various mortgage products from the shelves. This has, of course, impacted on consumers, who have found it increasingly difficult to get an affordable mortgage due to lack of accessibility, availability, and affordability.»
Mortgage deals axed following B&B collapse
According to a recent report a huge number of mortgage products from lenders were axed following the high profile collapse of Bradford & Bingley, which was recently part nationalised. Shortly after the collapse over 10% of mortgage that were on offer to borrowers, buy to let investors, and those looking to remortgage were pulled from the shelves. This equates to over one in ten mortgage deals being pulled from the shelves in the wake of the B&B disaster.»
Mortgage conditions become tougher
As most people are already well aware mortgage conditions and credit conditions in general have become increasingly tough since the onset of the global credit crunch in the latter part of 2007. »
How hard will it be to get an adverse credit loan?
In the past getting an adverse credit loan could be difficult, and many people with damaged credit found it difficult to get some forms of finance. However, although many lenders would not consider lending to those with damaged credit in the past, and many others charged extortionate rates of interest on loans for those with damaged credit, it was usually possible to get some form of finance even with an adverse credit rating. Getting finance in the UK over recent years has been a pretty relaxed process, and the ease of getting credit has probably been a major contributory factor in the growth of the nation’s huge personal debt mountain.»
Banks’ special offers on financial products often more expensive than best buys
With the January sales well and truly underway many consumers are hoping to bag a bargain or two. This year it seems that it is not just High Street retailers that are offering products in the sales, as many other sectors have joined in ranging from broadband providers offering special deals on packages to banks offering great value financial products to help consumers save money.»
[...] Huge drop in range of mortgage deals available [...]