Lenders continue to offer fewer mortgage products
According to a recent report the number of mortgage products being offered by lenders across the UK is continuing to fall, with lenders favouring those with higher deposits to put down in the current financial climate, resulting in fewer mortgage products being made available by lenders for those that do not fit into this group.
Lenders have been rationing their home loans for some time amidst tighter lending conditions stemming from the global credit crunch, and many would be borrowers have been pushed out of the market due to the dwindling number of mortgage loans on offer.
Over the past year industry officials estimate that there has been a 65 percent drop in the number of mortgage deals available on the market, with a 25 percent drop since the start of November alone. Over 50 percent of the mortgage loans that are still available are said to require deposits over at least 25 percent from the borrower, which means that most first time buyers and those with little equity in their current homes will be excluded from taking out the majority of the available loans on offer.
One industry expert said: “The vast majority of products lost in the last month are as a result of the loss of so many base-rate tracker mortgages. A month ago there were 249 available, today there are just 45. With base rate falling to such low level, many lenders are choosing to severely restrict the number of trackers they offer or not offer them at all.”
She added that there were a couple of lenders that still offered 0% deposit mortgages, but that access was highly restricted, stating: “The 0% deposit products are from Northern Bank, who only lend in Northern Ireland and Tipton & Coseley BS, who only lend in the Midlands and you need a guarantor to get their mortgages.”
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