Some encouraging news for borrowers this week as new figures from Moneyfacts showed that the number of mortgage deals available is at its highest level since February 2008.
There are now 3,035 prime, residential mortgage deals available – a big improvement on the 1,209 deals around when things were at rock bottom back in 2009.
The figures are particularly good news for first time buyers as one major area of improvement has been in the number of mortgages available to borrowers with a 10% deposit. If you’ve got 10% to put down, you’ve now got a choice of 325 mortgage deals according to Moneyfacts, vs. just 75 in April 2009.
That choice includes some new deals from the Post Office as it has just cut the rate on its 3-year fixed rate from 5.99% to 4.75%. Other lenders have also reduced the rates on their 90% LTV deals this month.
Although things are improving for borrowers with a 10% deposit, this remains a key threshold and those with less than 10% to put down are still faced with very little choice and much higher mortgage rates.
We’ve some recent initiatives and new products from lenders in this area, but it’s still one that most are staying away from. For home buyers, this means that there’s a clear divide between those that are able to gather a deposit of 10% or more and those that aren’t.
Hopefully, this trend in improving rates and choice will continue, allowing more people to either move up the property ladder, or get on it for the first time.