Product choice sinks to credit crunch low

10 October 2008

The research found there are currently 3,281 mortgage products available with lenders continuing to withdraw their higher LTV products.

Moneyfacts.co.uk also found that the number of available products with a maximum LTV of 60% has increased significantly, going from 84 in August to 155 for October.

Darren Cook, head of press and PR at Moneyfacts.co.uk, says: “Choice may be reducing, but there are still enough products out there for borrowers to try and find a suitable deal that suits individual circumstances.”

But the research also found that while product choice is limited, rates are beginning to come down. Between August and October this year the average two-year fixed rate deal has gone from 6.90% to 6.32%, with the average two-year tracker falling from 6.58% to 6.28%.

Cook adds: “The difficulties lie in the lack of liquidity within the market and providers having no appetite or being unable to lend on a larger scale. In essence, our data shows that mortgages are getting a little cheaper, but the stock rooms are currently nearly empty.”

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