6 September 2010

Lenders are making mortgages more accessible, with the cost of many currently falling, according to recent figures. The data*, collected during September, has indicated that the number of home loans available with a 20% deposit has increased, but availability has dropped for those offering 40%.

This is a reverse in recent month's trends, which has seen the best rates offered to those who were able to pay larger deposits. Despite an increase in mortgage affordability, the number of loans being applied for remains slow.

The figures also showed that the number of mortgages available to people with just a 10%, or less, deposit remains small. This has meant that many first-time buyers have been unable to  get on the property ladder, and have instead turned to renting as an alternative.

For potential home owners with a 20% deposit they now have 352 mortgage products to choose from, compared with just 166 at the start of the year. For those with a 40% deposit the number of packages has now fallen to just 234, the lowest figure seen since the start of 2009.

The Bank of England recently announced that the number of mortgages approved in the UK for September has remained the same as the 48,722 approved in July.




*Source: BBC

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