Mortgage Products Available Down 40%
The total number of mortgage products available has fallen by over 40% in the last three months according to new research by Moneyfacts.Most mortgages have vanished due to sub prime mortgages being withdrawn from sale. Bad credit mortgages was once the fastest growing mortgage market, but is now suffering the biggest decline due to the recent credit crunch.
In general the higher risk products have been wihdrawn by mortgage lenders, with many existing products having more conservative lending limits applied.The maximum loan-to-values ("LTV") have fallen, self-certification products have seen a decline, and borrowers are now less likely to find a bad credit mortgage lender that will accept extra heavy or unlimited adverse credit.
For customers with good credit ratings the residential mortgage market has witnessed a 16% drop in the number of mortgage products available for sale - unusual given the mortgage market is fairly static at the moment.
Julia Harris, Mortgage Expert at Moneyfacts, said: "Clearly an overall 40 per cent reduction in products available will mean less choice for borrowers, particularly for those with bad credit, irregular incomes or those looking for high LTV products."
With mortgages harder to come by, the number of buyers in the housing market is likely to fall, meaning home owners will find it more difficult to sell their houses quickly. Less demand is also likely to lead to a fall in prices. If you dinf yourslef in this situation, please give Quick Move Now a call on 0800 068 3366 - we can help you.
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