Money News

More mortgages hit the market

There are now 70% more mortgages available compared to the bottom of the crash.

The number of mortgages available is rising, but deals are limited for borrowers with small deposits.

There are now 2,053 mortgages on the market, up 70% on the bottom of the market in April 2009 and up 28% from the start of the year, according to financial data website moneyfacts.co.uk.

However, borrowers with small deposits or little equity behind them are finding choice is still limited, but growing.

There are just 13 mortgages for 95% loan-to-value (LTV) deals and 152 to 90% mortgages – up 44% and 33% from the start of the year respectively.

This compares with 680 75% mortgages and 360 60% mortgages.

The increased number of mortgages available is also benefiting customers as it brings more competition to the market.

Michelle Slade, spokesperson for Moneyfacts.co.uk, said: “Increased availability brings increased competition and the mortgage market is finally seeing some of the most competitive deals of the last few years.

“Lenders are becoming more accommodating with their lending criteria, which bodes well for increasing the competitiveness of the mortgage market.”

She added average mortgage rates were falling while deposit requirements are now easing.

Ms Slade explained: “House prices appear to have bottomed out, meaning higher LTV mortgages are a less risky option for lenders.

“For a long time, borrowers with a small deposit have had few options. Many will be hoping the positive trend continues, with increased competition reducing the cost of high LTV mortgages.

“Only then will first-time buyers, many of whom are currently priced out of the market, be able to return.”