Hunt for the disappearing mortgage
A good mortgage these days is hard to find
Tuesday, 07, Jul 2009 10:47
The number of mortgages on the market has dropped by 92 per cent in the last two years.
Currently there are just 2,282 mortgage deals available, compared to 27,962 in July 2007.
This time last year there were 5,040 mortgages, according the data from moneysupermarket.
For first-time buyers, there are only 1,195 mortgage deals available.
Louise Cuming, head of mortgages at moneysupermarket, said: "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."
She added it was doubtful whether 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," she said.
Last week, the Bank of England reported credit conditions had improved "slightly" over the second quarter of 2009 – the first rise in mortgage availability since 2007.
However, it did reveal mortgages for deals over 75 per cent loan-to-value (LTV) were still no easier to come by.
While some major lenders, including those now part owned by the government, have pledged to increase lending, the number of smaller lenders that have dropped out from the market has caused a massive squeeze for borrowers.
Find market leading mortgage rates using our best buy tables.
