Drop in range of mortgages available

Industry officials have recently reported that the number of different mortgages available in the UK market has fallen by around two thirds since the onset of the credit crunch, with an increasing number of lenders taking a variety of mortgages deals off the shelves as the credit crunch continues to take its toll.

The report shows that there were around 15,600 different mortgage products and deals available in the UK last July, prior to the global credit crunch making its way across the country.

However, in the space of just seven months this has fallen to just 5,725 mortgage products and deals.

First time buyers, buy to let borrowers, and sub-prime consumers have been strongly affected by the drop in mortgage products over recent months, and many lenders have had to restrict their lending by making their mortgage lending criteria more comprehensive.

The Council of Mortgage Lenders and the British Bankers Association have both reported a slump in mortgage lending, and even building societies have suffered increased difficulties in terms of keeping up with demand for mortgages from those no longer able to get finance from a mainstream bank.