Mortgage choice reaches 9-year high with record low rates
The choice of mortgage products available to home buyers and property investors has reached a nine-year high, comments Moneyfacts
Borrowers can now choose from 4,460 home loans available in May 2017 – that’s almost 1,000 more mortgages available today than in the same month last year.An increase in competition among lenders, borrowers reluctant to switch from their current Standard Variable Rate and banks that have fallen behind on their lending targets have been cited for the surge in the number of mortgages available – with every product designed to tempt new clients.”Despite the Mortgage Market review, which was designed to stabilise the home loan market and set more stringent parameters for lenders to work within, borrowing money to buy property is probably at its most fluid,” comments James Robinson, the General Manager at mews-specialist estate agency, Lurot Brand.”As well as a bigger number mortgage products available, the types of home loans offered are becoming more flexible in their detail, with lenders aware that they need to tailor their products and add features that suit a variety of circumstances and borrowers,” adds Robinson.The news from Moneyfacts has quickly followed the launch of a mortgage with a rate of less than 1% – heralding an exceptionally affordable time in the home loan market.
The Mortgage Market Review has stabilised the market, making lending more robust, meaning providers can now focus on the life of the mortgage rather than the short-termism of the past.
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