Increase in mortgage availability could spell good news for consumers

A recent report has indicated that the number of mortgages on offer to consumers could be on the increase, and access to these mortgage deals may be getting easier, even for first time buyers in some cases.

The mortgage market has gone through severe difficulties over recent years, and the last couple of years have seen the availability of mortgage become increasingly restricted, leaving would be borrowers struggling to get the finance that they need.

For first time buyers the market has been particularly tough, as not only have lenders been restricting who they lend to but they have also been demanding sky high deposits, which for many first time buyers has put homeownership way out of their reach.

However, things have been improving in the mortgage market of late according to the report, and this means that first time buyers and other borrowers could find it easier to get the mortgage loan that they need.

The number of mortgage deals available from lenders in the UK is said to have increased by an impressive 20 percent since the start of this year alone, which means that there is far more choice of borrowers.

Some of the deals that are now available to borrowers from UK lenders offer 90 percent of the property value, which means that borrowers only have to find 10 percent deposit. Over the past couple of years lenders have been demanding as much as 40 percent deposit in some cases.

One official said that lenders were becoming a little more relaxed when it came to providing finance, stating: “Better rates and an increase in appetite to lend could indicate that lenders are opening their doors just a little wider and trying to compete for business. If standard variable rates continue to rise, many customers will be forced to find a better deal elsewhere and lenders may now be wise and gearing towards the prospect.”

Tags: access, Subprime lending, Mortgage loan, uk lenders, mortgage, deal, lenders, Mortgage broker