Did you Know? - Dramatic Fall in Mortgage products on offer

Did You Know?

The number of mortgage products on the market has fallen dramatically over the last year, with less than 4,000 products currently available, compared with 13,428 available this time last year – figures from the Council of Mortgage Lenders.

So there may be some 'bargain' low cost properties available on the market in the current economic climate, but there are fewer mortgage options for borrowers, particularly prospective first time buyers. Not only are there fewer mortgage options, but borrowers may also find themselves having to pay a larger premium for the added risk that the mortgage lender is taking on in these uncertain times. It is, therefore, more important than ever to search out a good deal.

First of all, shop around. Banks, building societies, insurers, financial advisers and estate agents all offer mortgages. The range of deals on offer and the vocabulary used – standard variable rate, capped, tracker – can be confusing. The important thing is not to simply pick the mortgage with the lowest interest rate – you could find yourself trapped in a deal with a higher rate later in the term of the mortgage, with high penalties to pay if you choose to switch. To get a good deal you need to look at the bigger picture.

As well as offering a good interest rate, the best deals also offer you low initial set-up costs and the freedom to switch products or change lenders whenever you want.

If you're still confused, consider using a mortgage broker. While some charge a fee, many rely entirely on the commission they earn from the mortgage provider, meaning you can benefit from their knowledge and expertise without paying a penny! And remember, if you see a property that you can make a low offer for in the current economic climate, and that needs some renovating, just visit homeimprovementquotes.co.uk to see how inexpensively you can renovate that property.