Mortgage deals make a comeback

16 September 2009 / by Andy Davies

The number of mortgage products is slowly increasing, but according to, the market continues to be dominated by deals for borrowers with a 25 per cent deposit or more.

Since April 1 2009, when there were 1,209 deals on the market, the number of mortgage deals has now increased to 1,329; however, this still represents a big deficit compared to when the market was at its peak in July 2007 with nearly 12,000 deals available.
Michelle Slade, spokesperson for, says lenders are gradually returning to the market, but, "with a very cautious approach".

Commenting on the increase, Ms Slade said: "The market remains dominated by deals for those borrowers with at least a 25 per cent deposit as lenders look to cherry pick the best customers."

Additional figures published show that borrowers looking for a 90 per cent mortgage have seen their options increase as there are now 106 products on the market compared to 71 back in May this year.

Ms Slade welcomed this news, but said: "Borrowers with just a 10 per cent deposit are finally seeing increased options, but they are still paying a very heavy price for their lack of equity

"The best deal on offer for a borrower with just a 10 per cent deposit is 2 per cent higher than that available to those with a 40 per cent deposit, adding £170 per month to the cost of a £150,000 mortgage."

She also claims lenders "continue to be slow to react, despite the cost of funding continuing to fall".

Before going on to say: "The lack of any real competition in the market is still having a huge impact. None of the big lenders seem to want to be the first to cut rates as they are worried they will be swamped with applications.

"Lenders may be open for business, but we need more bold moves from some of the bigger players before borrowers start to see any real benefit."

Get mortgage quotes and advice»

© Fair Investment Company Ltd