Mortgage products increase but way off pre-credit crunch levels

Permalink: Mortgage products increase but way off pre-credit crunch levels
by Kay Murchie

Figures from moneysupermarket.com have revealed a rise in the number of mortgage products available but numbers are still way off the levels seen prior to the credit crunch in August 2007.

According to the price comparison website, last week there were 2,516 mortgage products on offer in the market, breaking through the 2,500 mark for the first time since May 2009.

This was the third consecutive month that mortgage products increased but compared to August 2007 - prior to the collapse of Northern Rock, there were more than 30,000 mortgage products on the market.

Hannah-Mercedes Skenfield, mortgages channel manager at moneysupermarket.com, comments: “This is good news for buyers, as passing the 2,500 barrier does suggest that those looking for a mortgage are finding more and more choice, and where there is choice, there is competition.”

However, However, Ms Skenfield points out that this is still a small fraction of the products available in August 2007 so a recovery is still a long way off.

Finally, the Council of Mortgage Lenders recently reported that first-time buyers are still having to put down a hefty deposit of 25% in order to secure a mortgage.