21 Dec

Mortgage market 'is slowly improving'

Mortgage market 'is slowly improving'

Supply in the mortgage market is making a slow recovery, according to analysis carried out by moneysupermarket.com.

The price comparison site reported that the number of mortgage products available to consumers has increased by 13 per cent since August, although there are significantly fewer offerings with a high loan-to-value (LTV).

However, while the number of 95 per cent LTV mortgages has dropped considerably, 85 per cent LTV products have increased by one third since January this year.

Hannah-Mercedes Skenfield, mortgage manager at moneysupermarket.com, described the growth in 85 per cent LTV loans as "particularly encouraging".

"For many consumers the real difficulty in getting on the property ladder is in scraping together a deposit," she commented.

Ms Skenfield went on to explain that lenders' fear of increasing the number of bad debts on their books had led to the collapse of the high LTV mortgage market and welcomed current trends which suggest that a wider range of financing is available to borrowers.

Data released by the Council of Mortgage Lenders on December 18th estimated that gross mortgage lending totalled £12 billion in November, representing a 14 per cent fall compared with the same month in 2008.ADNFCR-1222-ID-19524320-ADNFCR

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