Available UK Mortgage Deals Jump By Nearly 20%
2 minute read
Recent figures have shown that the number of available mortgage deals on the market has risen by nearly a fifth in the past year. According to recent statistics published by the Guardian, the total number of available home loans in the month of April rose from 11,416 to 13,539. The figures show that competition has indeed returned to the mortgage market.
What Has Led To The Rise?
After the financial crisis, banks and building societies ceased offering high loan-to-value mortgages, and the focus was on safer lending, targeted at the most reliable options. However, recent attempts to return some stimulus to the market including the Help to Buy scheme, have seen lenders more willing to offer deals to customers with small deposits.
Mortgage Price Wars
Another important factor behind the 20% rise is clearly the mortgage price war that has emerged from low interest rates, with the likes of Barclays currently offering 10 year fixes below 3% and others offering similarly priced deals just above this level. Nationwide and TSB reduced the cost of some of their fixed rate loans by 0.3%. Of course, such deals often involve a long term commitment and a large deposit, which may serve to dissuade a number of applicants. However, the dramatic increase in competition clearly indicates a greater freedom of choice amongst potential applicants.
The Experts View
Greater competition is certainly proving great value for customers, who are being offered historically low fixed interest rates. The size of the deposit or amount of equity still proves to be the determining factor of what rate a borrower can obtain however, the implementation of the new affordability guidelines as a result of the recent MMR has also meant that customers need to be aware of which lenders are able to lend them the amount they require. This has arguably to a degree, been more of a determining factor in peoples choice of which rate they can apply for. To discuss your mortgage application, speak to Just Mortgage Brokers today.