Slump in number of mortgage products on offer

The number of different mortgage deals available has slumped to only a tenth of its level before the credit crunch first struck, figures showed today.

There are currently just 1,542 different home loans available across the market, compared with 15,599 in July 2007, according to financial information group Moneyfacts.co.uk.



The fall in choice has been particularly acute for people looking to borrow a large proportion of their home's value, with the number of different deals available for people with just a 5 per cent deposit diving from 1,079 in July 2007 to just three now.



Choice is also limited for people with a 10 per cent deposit, as there are currently only 113 different mortgages available for consumers looking to borrow 90 per cent of their home's value.



Instead the majority of lenders are demanding deposits of at least 40 per cent if homeowners are to benefit from their best rates.



The latest slide in mortgage availability has been driven in part by lenders withdrawing their ranges of tracker products ahead of last week's interest rate cut.



But there have also been steep falls in product availability for people with impaired credit histories and so-called self-certification borrowers, such as the self-employed.



Lenders who provide mortgages to people with poor credit histories have previously offered a broad portfolio of loans to cover a wide range of circumstances, but many have recently cut back on their product choice.



There has also been an exodus among lenders from the self-certification market, possibly as they become nervous about the prospects for the self-employed during the recession.



There are now no variable-rate self-certification deals available, while the maximum loan to value ratios lenders will advance on fixed-rate products is 75 per cent.



Among the 46 fixed-rate products still available in this sector, the majority charge rates of at least 5 per cent, while in some cases interest can be as high as 10 per cent.



Meanwhile, lenders continued to sit on their hands following the recent reduction in the Bank of England base rate to 1 per cent.



So far, only a handful of lenders, including Lloyds TSB, Halifax, Nationwide and the Woolwich have agreed to pass on the 0.5 per cent cut in full to their standard variable rate customers, while Royal Bank of Scotland, which includes NatWest, is reducing its SVR by 0.19 per cent.



But around 90 per cent of lenders with an SVR have yet to announce whether they will pass on any of the reduction to their borrowers on this rate.



Banks and building societies have also been slow to say if they plan to reduce their savings rates.



Only a handful of small players have so far announced cuts, while some providers that offer only one or two products said they will keep their rates on hold.

Life and Style
tech
Arts and Entertainment
Rocky road: Dwayne Johnson and Carla Gugino play an estranged husband and wife in 'San Andreas'
filmReview: In the face of all-round devastation, even Dwayne 'The Rock' Johnson appears a little puny
News
i100
Arts and Entertainment
Bright lights, big city: Melrose Avenue in Los Angeles by dusk
books
Sport
Harry Kane makes Paul Scholes' Premier League team of the season
footballPaul Scholes on the best players, managers and goals of the season - and the biggest disappointments
News
i100
Finacial products from our partners
Property search
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

ES Rentals

    iJobs Job Widget
    iJobs Money & Business

    Guru Careers: Pricing Analyst

    £30 - 35k: Guru Careers: We are seeking a Pricing Analyst to join a leading e-...

    SThree: Trainee Recruitment Consultant

    £20000 - £25000 per annum + OTE £45K YR1: SThree: At SThree, we like to be dif...

    SThree: Trainee Recruitment Consultant

    £20000 - £25000 per annum + competitive: SThree: Did you know? SThree is a mul...

    Guru Careers: C# Project Team Lead

    £55 - 65k (DOE): Guru Careers: A unique opportunity for a permanent C# Develop...

    Day In a Page

    Fifa corruption: The 161-page dossier that exposes the organisation's dark heart

    The 161-page dossier that exposes Fifa's dark heart

    How did a group of corrupt officials turn football’s governing body into what was, in essence, a criminal enterprise? Chris Green and David Connett reveal all
    Mediterranean migrant crisis: 'If Europe thinks bombing boats will stop smuggling, it will not. We will defend ourselves,' says Tripoli PM

    Exclusive interview with Tripoli PM Khalifa al-Ghweil

    'If Europe thinks bombing boats will stop smuggling, it will not. We will defend ourselves'
    Raymond Chandler's Los Angeles: How the author foretold the Californian water crisis

    Raymond Chandler's Los Angeles

    How the author foretold the Californian water crisis
    Chinese artist who posted funny image of President Xi Jinping facing five years in prison as authorities crackdown on dissent in the arts

    Art attack

    Chinese artist who posted funny image of President Xi Jinping facing five years in prison
    Marc Jacobs is putting Cher in the limelight as the face of his latest campaign

    Cher is the new face of Marc Jacobs

    Alexander Fury explains why designers are turning to august stars to front their lines
    Parents of six-year-old who beat leukaemia plan to climb Ben Nevis for cancer charity

    'I'm climbing Ben Nevis for my daughter'

    Karen Attwood's young daughter Yasmin beat cancer. Now her family is about to take on a new challenge - scaling Ben Nevis to help other children
    10 best wedding gift ideas

    It's that time of year again... 10 best wedding gift ideas

    Forget that fancy toaster, we've gone off-list to find memorable gifts that will last a lifetime
    Paul Scholes column: With the Premier League over for another year, here are my end of season awards

    Paul Scholes column

    With the Premier League over for another year, here are my end of season awards
    Heysel disaster 30th anniversary: Liverpool have seen too much tragedy to forget fateful day in Belgium

    Liverpool have seen too much tragedy to forget Heysel

    Thirty years ago, 39 fans waiting to watch a European Cup final died as a result of a fatal cocktail of circumstances. Ian Herbert looks at how a club dealt with this tragedy
    Amir Khan vs Chris Algieri: Khan’s audition for Floyd Mayweather may turn into a no-win situation, says Frank Warren

    Khan’s audition for Mayweather may turn into a no-win situation

    The Bolton fighter could be damned if he dazzles and damned if he doesn’t against Algieri, the man last seen being decked six times by Pacquiao, says Frank Warren
    Blundering Tony Blair quits as Middle East peace envoy – only Israel will miss him

    Blundering Blair quits as Middle East peace envoy – only Israel will miss him

    For Arabs – and for Britons who lost their loved ones in his shambolic war in Iraq – his appointment was an insult, says Robert Fisk
    Fifa corruption arrests: All hail the Feds for riding to football's rescue

    Fifa corruption arrests

    All hail the Feds for riding to football's rescue, says Ian Herbert
    Isis in Syria: The Kurdish enclave still resisting the tyranny of President Assad and militant fighters

    The Kurdish enclave still resisting the tyranny of Assad and Isis

    In Syrian Kurdish cantons along the Turkish border, the progressive aims of the 2011 uprising are being enacted despite the war. Patrick Cockburn returns to Amuda
    How I survived Cambodia's Killing Fields: Acclaimed surgeon SreyRam Kuy celebrates her mother's determination to escape the US

    How I survived Cambodia's Killing Fields

    Acclaimed surgeon SreyRam Kuy celebrates her mother's determination to escape to the US
    Stephen Mangan interview: From posh buffoon to pregnant dad, the actor has quite a range

    How Stephen Mangan got his range

    Posh buffoon, hapless writer, pregnant dad - Mangan is certainly a versatile actor