Choice of mortgage for new borrowers falls further
November 13, 2008
According to a recent report the number of mortgage products that are now available for new borrowers has fallen even further over the past couple of weeks, leaving new borrowers really struggling to find a suitable mortgage product that fits in with their needs and pockets. This could further impact on consumer confidence as well as on the housing market, as an increasing number of borrowers fail to find a loan that they can afford or gain access to.
Earlier this week figures from the financial industry showed that for new borrowers there were just 3281 mortgage products on the market. Just one year earlier the number of mortgage products on offer stood at 10.726. In July of last year there were over 13,000 products available. These figures show just how rapidly and severely the mortgage market has fallen, particularly when it comes to loans for new borrowers.
However, one official said that whilst the choice of mortgage was not as great as it once was there were still competitive deals available and consumers needed to make sure that they looked for them.
He said: “Choice may be reducing, but there are still enough products out there for borrowers to try and find a suitable deal that suits individual circumstances. The difficulties lie in the lack of liquidity within the market and providers having no appetite or being unable to lend on a larger scale. In essence, the price list shows that mortgages are getting a little cheaper, but the stock rooms are currently nearly empty.”
Government officials hope that the recently revealed bailout plan for the financial industry will help to increase liquidity and result in a greater choice of loans for consumers and small businesses.
- Little choice for those wanting longer term fixed rate mortgages Over recent months the Chancellor of the Exchequer, Alistair Darling, has been pushing for longer term fixed rate mortgages in the UK. Darling believes that longer term fixed rate deals for 20 or 25 years
- House price falls slow in pace Over the past year house prices have been falling month on month in the UK, with average house prices said to have fallen by close to 15% recently compared to the same period last year.
- Should you go direct to lender or through an intermediary for your mortgage? These days getting a mortgage can be really difficult, and the global credit crunch has impacted heavily on the mortgage sector heavily, leaving consumers with little choice when it comes to finding a mortgage and
- Government moves on mortgage lending and repossessions Following the pre-budget report, it has been announced that the government is to set up a new review panel that will monitor lending to businesses and consumers. The announcement came from the Chancellors, Alistair Darling,
- Many sub-prime borrowers are turning to brokers A recent report has shown that many sub-prime borrowers, such as those with poor credit and those without any proof of income, are now turning to brokers in order to get their loans and mortgages,
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