Mortgage News
FTB boost as mortgage choice hits 43-month high
The number of mortgages available to homebuyers has hit 3,035, the highest level since February 2008 Moneyfacts has found.
The financial information firm said that while mortgage numbers have recovered to the levels of a few years ago, the market is still “a very different place”, particularly for first-time buyers.
According to the data, borrowers with a 10% deposit or less currently have the choice of 325 products. This is considerably higher than the 75 that were available in April 2009, but remains well down on the 1,258 products that were on offer to the same borrowers in February 2008.
A spokesperson for Moneyfacts, said: “First-time buyers are finally being given some options as the number of deals available to borrowers with a 10% deposit or less continues to grow.
“By increasing the number of mortgages, lenders are showing that they are open for business.
“Rising product numbers bring more competition, which has brought more keenly priced mortgage deals to the market. Average mortgage rates have fallen to all-time lows, while at the same time deposit requirements are easing.”
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Despite the increase in mortgage products, Moneyfacts said that lending levels are still a long way off compared to those seen in previous years.
“Increased availability of mortgage products does not mean increased mortgage lending. Affordability remains a key factor, so lenders continue to target remortgagers with sizable deposits who already have a proven payment history.”