27 Dec 2024

Mortgage products slowly start to return

The number of residential mortgages available is slowly increasing, but still the market is dominated by deals for customers with more than a 25% deposit.

On 1 April 2009 the number of mortgages available hit rock bottom at just 1,209, a 90% drop from the peak of 11,951 products available in July 2007. Today there are 1,392 products available.

	Max 60% LTV	Max 75% LTV	Max 80% LTV	Max 85% LTV	Max 90% LTV	Max 95% LTV	Max 100% LTV
Sep-08	69	418	176	161	492	82	7
Oct-08	96	515	192	182	450	57	7
Nov-08	132	629	224	220	453	86	13
Dec-08	156	485	235	153	402	65	12
Jan-09	184	423	228	158	204	30	12
Feb-09	261	422	97	159	94	3	10
Mar-09	272	429	101	169	89	3	10
Apr-09	280	453	100	182	72	3	10
May-09	297	487	107	186	71	3	10
Jun-09	285	507	127	195	77	6	10
Jul-09	290	454	119	190	98	6	10
Aug-09	314	489	137	187	96	9	8
Sep-09	315	509	148	191	106	9	8
Source: Moneyfacts.co.uk 14.9.09.

Michelle Slade, spokesperson for Moneyfacts.co.uk commented:

“Lenders are slowly taking small steps back into the market, albeit with a very cautious approach.

“The market remains dominated by deals for those borrowers with at least a 25% deposit as lenders look to cherry pick the best customers.

“Borrowers with just a 10% deposit are finally seeing increased options, but they are still paying a very heavy price for their lack of equity.

“The best deal on offer for a borrower with just a 10% deposit is 2.00% higher than that available to those with a 40% deposit, adding £170 per month to the cost of a £150,000 mortgage.

“Despite the cost of funding continuing to fall, lenders continue to be slow to react.

“The lack of any real competition in the market is still having a huge impact. None of the big lenders seem to want to be the first to cut rates as they are worried they will be swamped with applications.

“Lenders may be open for business, but we need more bold moves from some of the bigger players before borrowers start to see any real benefit.”

Moneyfacts Group
Moneyfacts is the UK’s leading independent provider of personal financial information and our data is used and trusted throughout the financial industry.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

Think carefully before securing other debts against your home, your home may be repossessed if you do not keep up repayments on your mortgage.

Go Direct.co.uk is a trading style for website purposes of Go Direct UK Ltd.

Go Financial Services is a trading style of Go Direct UK Ltd which is an appointed representative of Personal Touch Financial Services Ltd which is authorised and regulated by the Financial Conduct Authority. Registered in England & Wales Company 5703224. FCA Number 456600

We normally do not charge a fee for mortgage advice, however this is dependent on your circumstances. Our typical fee would be £349