Lenders Reduce Number of Loan Offers

Thu, 25 Oct 2007

The number of home loans on offer has vastly reduced in recent months, according to Moneyfacts.co.uk. The price comparison service states that the number of products on offer has fallen by 40% in the last three months, with the knock on effects of the subprime crisis there for all to see.

The subprime category is unsurprisingly experiencing a sharp decrease in the number of products on offer, with a 54% reduction in residential products and a 72% decrease in the number of buy-to-let deals on offer. However, a wider range of potential homeowners have also been affected, with the number of products available in the ordinary mortgage market down by 16%. Of the loans remaining, the rates have been increase whilst credit standards have been tightened.

Some of the most reputable banks have made significant alterations to the products they are offering, with Abbey and Halifax withdrawing their high risk products, such as loans offering 100% or more of a property’s value. Meanwhile, troubled mortgage lender Northern Rock has reduced the number of products on offer from 230 down to 70.
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