Choice for mortgages is reducing
The number of mortgages available from lenders is shrinking, it has been revealed.
Despite a good start to the year in the mortgage market, there are 40 per cent less mortgages available compared to three months ago.
This is a stark contrast to the first six months of 2007, in which the number available grew by 22 per cent.
Julia Harris, of independent financial comparison site Moneyfacts.co.uk, said: “While most of this change can be attributed to the sub prime market, seeing a 72% reduction in the buy-to-let market and a 54 per cent cut in residential deals, the 16% fall in prime residential products is worth noting.”
This will come as bad news for professionals searching for mortgages in the near future, as lenders seem to be allowing the market to stagnate, added Ms Harris.
She explained that the reduction in options results in a “worrying” lack of competition and innovation on the part of lenders.
One of the most significant moves has been made by the troubled Northern Rock bank, which has slashed the number of products it offers by around 230 to just 70.
