The number of mortgage products available from lenders has more than doubled in the last two years, but other factors continue to block buyers' routes to the housing market.
Research conducted by Moneyfacts shows that the number of residential mortgage products fell has increased from an all time low of 1,097 two years ago to 2,447, with borrowers holding a 20% deposit seeing the number of deals increase by threefold over the period. The number of mortgages in the 80% loan-to-value range has jumped from 97 to 390. The tier with the largest number of products is 75% LTV, however - a result of lenders making their best deals available at this tier. Two years ago, the number of residential mortgages available to a buyer with a 25% deposit was 422; today that number is 851.
Despite the rise in mortgage numbers, access to them remains restricted for many. Latest figures from the Bank of England show that the number of mortgage approvals has fallen recently, while the cost of fixed rate mortgages continues to rise. "Although lenders' windows may be full of best buy deals, it doesn't mean they want to lend. Borrower affordability remains the key factor in lending decisions and lenders remain strict over which borrowers they will accept," said Michelle Slade, spokesperson for Moneyfacts Group. "Borrowers who have benefited from record low interest rates for the last two years may be in for a shock when it comes to finding a new deal."
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