10 Jun

Million pound mortgage availability 'declining'

Million pound mortgage availability 'declining'

The number of million pound-plus mortgages available on the market is dwindling, according to Bestinvest.

Peter O'Donovan, head of mortgages at the firm, said that such products are still available, but consumers are likely to find their choices reduced.

He noted that some big mortgage providers such as Abbey, Cheltenham and Gloucester, Woolwich and Halifax are still willing to lend that sort of money.

Mr O'Donovan suggested that this was partly because "lenders feel they have a smaller amount of money available to lend to at the present time. Therefore, they'd rather spread the risk over, say, 20 mortgages of 100,000 than two mortgages of a million pounds."

The decline in the number of high-end mortgage available comes as sales of million pound properties in the UK are rising sharply.

According to Halifax sales of such homes rose by 36 per cent last year, compared with a nine per cent fall in total property sales.
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