Number of Mortgage Products at Highest Level Since April 2009

A study by Moneyfacts showed that there are 3,054 residential mortgage deals available on the market, although average rates are down the standard rate for a two-year fixed rate mortgage has dropped from 4.48 per cent to 4.22 per cent in the last year. Nevertheless there has been a significant expansion of the mortgage sector over the past 12 months a great improvement from the low-point of April 2009, when there was a mere 1,209 products on the market. Since November last year, when just 2,493 could be found, more than 500 new mortgages have become available. The largest growth in mortgage products has come from 85 per cent loan-to-value (LTV) products, with numbers increasing from 448 to 542 over this period. However the largest number of products can still be found with 75 per cent LTV mortgages, with 839 currently available in the UK. Perhaps the greatest success story Moneyfacts unearthed was the incredible expansion in the number of 95 per cent LTV deals, which have increased more than ten-fold since April 2009. Back then only three products were available. By November last year there were 24 to be found and this month the figure has increased to 37. For customers with a 10 per cent deposit, the outlook has also improved, with the number of 90 per cent LTV mortgage products increasing from 206 to 253 in the last 12 months. Although the number of mortgage products has increased, Moneyfacts spokeswoman Sylvia Waycot pointed out that “sadly, increased availability of mortgage products does not mean increased mortgage lending.” “Affordability remains a key factor, so lenders tend to target borrowers with sizable deposits who already have a proven payment history.”