Mortgage market offering less choice to consumers
Published: 28-Mar-2008
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Those struggling to get themselves onto the property ladder face even greater difficulties as the mortgage market becomes increasingly limited.
According to a recent survey by moneysupermarket.com, the online comparison service, the there has been a 60 per cent decrease in the range of mortgage products available to buyers.
Louise Cuming, head of mortgage services at moneysupermarket.com, maintained that lenders were taking a "much more pessimistic approach to their attitude to risk".
She commented: "[Lenders are] stepping away from the deals that they would consider riskier. Initially it was really just affecting people with bad credit history but now, more and more, it's also hitting people who either haven't got a lot of equity in their properties or they haven't got a big deposit.
Ms Cuming noted that the reduction of products meant increased costs for consumers.
She said: "Simple economics means less choice, more expensive prices. We've also seen, at the same time as the lack of availability of products, the products that are available are being priced at a premium rate so costs are going up."
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