Mortgage Products Market Shrinks
There are just half the number of option available than there were this time last year. First time buyers now only have 1,195 products to chose from, compared to 17,756 in July 2007.
The lack of loan options for people who would like to buy a house is hindering a sustainable recovery in the housing market. Until this changes, and more mortgages are available, it is expected that house price growth will remain muted at best, with possible further falls possible.
The number of products is unlikely to increase in the short term. Lenders are competing to attract the same borrowers - those that are seen to offer
the least risk to the bank.
Written by Samantha Peppercorn of
Homeowner Loans