CHESTER, England, August 22, 2012 /PRNewswire/ --
- The number of 90 per cent LTV mortgages dropped by 26 per cent in the last year
- In six months, the number of 95 per cent LTV mortgages fell by 43 per cent
- In the last year, the amount of first time buyer products decreased by 31 per cent from 1,786 in 2011 to 1,225 in 2012
The number of mortgages available for first time buyers and borrowers with smaller deposits has fallen significantly over the last year, giving less choice to those trying to get onto the property ladder, according to MoneySupermarket.
Analysis by Britain's number one comparison site found the number of 90 per cent mortgages has fallen by 26 per cent from 330 products this time last year to the 244 now. It's a similar story with 95 per cent mortgages. In the last six months alone the number of mortgages available for loans up to 95 per cent of the property's value has fallen by 43 per cent from 49 products to just 28. Looking specifically at loans for first time buyers, there has also been a significant reduction of mortgage options. In the last 12 months, first time buyer mortgage products have fallen by 31 per cent from 1,786 to 1,225.
A number of lenders that were offering 95 per cent mortgages six months ago have since withdrawn them from the market. These include Cambridge, Ipswich, Nottingham, and Skipton Building Societies.
Clare Francis, mortgage expert at MoneySupermarket said: "Our analysis shows the continuing difficulty facing first time buyers and those with smaller deposits looking to find a suitable mortgage. Despite the launch of the Funding for Lending Scheme which was designed to encourage further mortgage lending by the banks, there appears to be few signs that the initiative is helping those with small deposits. It is still early days and we won't see any data on the impact of the initiative until the end of the year, but so far there is little to indicate that the scheme will kick start the beleaguered mortgage market."
Notes to Editors
Now - 244
6 months ago - 318
1 year ago - 330
Now - 28
6 months ago - 49
1 year ago - 13
First time buyer products
Now - 1225
6 months ago - 1,505
1 year ago - 1,786
Sourced by MoneySupermarket.com 20.08.12
MoneySupermarket.com compares (at 20th July 2012)
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