Mortgages available reduced by 71 per cent
Recent data has shown that the number of mortgages available on the market is down by seventy-one per-cent. The data from Moneyfacts.co.uk showed that compared to August last year, the figures have dropped significantly.
The amount being borrowed and the size of loans have also shrunk. The number of 100% mortgages on the market are almost vanishing from thirty-three to just two which doesn’t come as a surprise in today’s current climate. In addition to this a number of mortgage lenders previously offered more than 100% loans to homeowners and now currently no lender offers this type of mortgage. With the recent credit crunch the nature of the UK mortgage market has seen a bashing with fees on the rise and the numbers of good deals diminishing.
“One year ago the financial world changed completely as the credit crunch took hold. Today the world of mortgages is a completely different place,” said Michelle Slade, analyst at Moneyfacts.
She went onto say that, “the standard factors which usually determine the rates at which mortgage rates are set, including bank base rate, swap rates and Libor rates are all much lower than this time last year, yet the rates on offer are much higher. As house prices continue to fall and the risk of default increases, the lenders are pricing more for risk and as a result these standard factors are not quite as influential on the rates as they once were."
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