Mortgage deals 'hit new low'

14/10/2008

Credit crunch conditions are leading mortgage lenders to withdraw more and more deals from the market, according to a new survey.

Financial website Moneyfacts.co.uk found in its latest analysis that just 3,281 home loan deals are available to borrowers from high street suppliers.

By way of comparison, in July 2007, just before the start of the crunch, borrowers could take their pick from 13,000 loans.

However, the financial crisis has made banks much more careful about who they lend to - because it's become much harder for them to raise money on the wholesale markets.

Darren Cook at Moneyfacts.co.uk commented: "Choice may be reducing, but there are still enough products out there for borrowers to try and find a suitable deal that suits individual circumstances.

"The difficulties lie in the lack of [easy lending] within the market and providers having no appetite or being unable to lend on a larger scale."

According to lender Halifax, house prices in the UK have fallen by 13 per cent over the last year.

Tags; Debt Management and Banking, Young Family Finances,

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