There has been an increase in the choice of home loan products available during the economic downturn, according to new figures. The past eight months has seen the number of different home loans offered increase by more than a third, according to Moneyfacts.co.uk. There are now 1,624 residential mortgages available, an increase of 415 from April. Much of this increase derives from two year fixed rate loan deals, which have increased in number from 250 to 405 over the same period. Three year fixed rate loans have experienced a similar rise in number, up by 22 per cent to 352.
Longer term mortgage deals have expanded at a slower rate, meanwhile. There are now 297 deals fixed rate deals available over a longer term, up from 259 in April. The increase is even smaller when you consider that many of these loans require sizeable deposits. There are just nine deals available for borrowers with 5 per cent deposits, though there are 116 mortgages available with a loan to value ratio of 90 per cent, up from 72 in April. Clearly, the smaller the deposit and the higher the loan to value ratio, the higher the interest rate that will be charged.






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