Sonia Speedy, Monday May 19, 2008
Mortgage lending has hit a 33-year low as banks and building societies continue to pull their cheapest deals - so where can you find the best home loan for your needs? We take a look
As the credit crunch rumbles on and banks and building societies continue to be fearful of lending to each other on the scale they used to, things are getting increasingly tight for mortgage borrowers.
Lenders such as Northern Rock, Scottish Widows and Abbey for example have all shrunk their mortgage ranges for the current market conditions. Figures from price comparison website Moneyfacts.co.uk show that the number of mortgage deals to choose from has plummeted to fewer than 4,000 - last July there were more than 15,000 home loans to choose from.
Find the right mortgage for your needs
Mortgage clampdown
Research proves that it's become harder to get a mortgage. Figures from industry body the Council of Mortgage Lenders (CML) shows that the number of loans made available in the first three months of the year was just 143,000 - the lowest number since 1975.
Meanwhile, the Governor of the Bank of England Mervyn King has warned that the outlook for inflation - which measures the cost of living - has worsened as food and fuel costs continue to rise. He has also said that house prices are likely to fall further and that the "nice decade" is over.
Whether you're looking to remortgage or buy a property, we reveal how you can find an affordable deal amidst the current market turmoil.
