Money News
11th August 2008
Mortgage market shrinks 71%
The true impact of the credit crunch on the availability of mortgages was revealed today, with the news that there are currently 71 per cent fewer deals available compared with this time last year.
According to Moneyfacts.co.uk exactly a year after the crisis started, the number of mortgages on the market has fallen from 13,027 to 3,748.
The site also uncovered a fall in the average loan to value of mortgages being offered from 90 per cent to 80 per cent.
Meanwhile, 100 per cent plus deals have been withdrawn from the market entirely - and the number of lenders offering 100 per cent has fallen from 33 to just two.
Michelle Slade, analyst at Moneyfacts, said: "One year ago the financial world changed completely as the credit crunch took hold. Today the world of mortgages is a completely different place.
"The standard factors which usually determine the rates at which mortgage rates are set, including bank base rate, swap rates and Libor rates are all much lower than this time last year, yet the rates on offer are much higher."
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