Howard Archer, the chief UK economist at IHS Global Insight has said: "The overall marked softening in house prices from their late 2007 peak levels has made housing equity withdrawal less attractive." Clearly many of us feel that way but ironically the number of different mortgage deals has climbed to its highest level for more than two-and-a-half years and the majority of the products are aimed at existing homeowners.
The price comparison website Moneyfacts has calculated that there are more mortgage deals now available than at any time since November 2008. However, the rise in the number of offers is unlikely to help the housing market as. Some 808 mortgage products require a deposit of at least 25 per cent.
Completely understandably in the same period homeowners have turned their backs on lenders' offers, choosing instead to reduce their mortgage debts. Many homeowners had a "strong desire and perceived need" to reduce mortgage debt "to improve their personal financial balance sheets given high debt levels and serious concerns over the economic situation".
Sadly first-time buyers will still struggle to get a deal. There are only a handful of mortgages available to those with a deposit of less than 10 per cent and they often have other restrictions. However, there is some hope for younger potential borrowers, according to Moneyfact's figures: the number of mortgage deals requiring a 10 per cent deposit has climbed from 176 a year ago to 261 at the start of July.
Enable Independent - IFA’s in Bishop Stortford can help you navigate your mortgage needs in these changing times.
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