Home aloan: the amount of mortgages available to consumers on the uk market is at an all-time low

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Home aloan: the amount of mortgages available to consumers on the uk market is at an all-time low

14th March 2010

It's testimony to how the property market can rise and fall without precedence. New statistics according to the price comparison website MoneySupermarket.com have revealed that the amount of mortgages that are available on the market to consumers are at the lowest records since records began.

It has been quite a landmark time for the property market recently, which has seen record extremes in a variety of sectors recently.

There are just shy of 2,300 deals that are currently available to the discerning consumer. The market is looking even worse for consumers who have a bad credit record. The amount of deals open to such consumers is even less than this, on account of the fact that they are more vulnerable to home repossession due to arrears.

In addition, consumers that have had negative equity recently are also being left in the shade when it comes to the opportunity to remortgage in the hope of getting a better rate.

Also suffering chronic lack of choice are first-time buyers. Even though there are over one thousand deals out there, individual circumstances mean that the true amount of options for new consumers on the property ladder is low.

It's interesting to contrast the current amount of mortgage deals now to the market's peak nearly two years ago. The current amount of deals available in total is 10% less than that seen back in August 2007, meaning that there were tens of thousands of options back then.

Louise Cuming of MoneySupermarket.com shed some light on this: "Despite all the recent initiatives from the Government and Bank of England, the lack of credit is an ongoing problem. Many borrowers will struggle to get a mortgage."

Ms Cuming went on to analyse whether the number of deals on the mortgage market was like to change significantly in the near future and in this time of recession.

She added: "Unfortunately it is doubtful that 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."

There was further analysis from John Pain of the Financial Services Authority, who talked of the specialist mortgage market and spoke of how currently it is "non-existent."


Posted in Mortgages

 
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