There has been a huge drop in the range of mortgage deals that are available in the UK according to a recent report, which suggests that the number of different mortgage deals has dropped by two thirds since the onset of the global credit crunch. Over recent months more and more lenders have been taking various deals off the shelves, such as 100% mortgages and various other special mortgage types.

The buy to let and sub-prime sectors have been severely hit by this drop in the range of mortgages, with far less choice for consumers in this group. First time buyers have also had to bear the brunt, with specialist deals such as 100% mortgages disappearing from the shelves, and many lenders looking for a far higher deposit than the traditional 5% for those that want to access the most competitive and affordable rates.

Last July, before the credit crunch took a hold in the UK, there were around 15,599 different mortgage deals on offer in the UK, enabling consumers to enjoy plenty of choice and easier access to an affordable mortgage. However, this figure has now plunged to just 5725, and this has resulted from a myriad of lenders quickly withdrawing deals in order to protect themselves from potential risk as well as a result of being unable to secure the necessary finance that they need to fund these mortgages.

The housing and mortgage sectors have taken a real hit over recent months, and a recent report has shown that there has been a large drop in the level of mortgage applications approved for February, as well as a reduction in the number of people expressing an interest in purchasing at present.

Recent additions:

• Disaster could lie ahead for those on interest only mortgages
• Charity concerns over sale and rent back firms
• A five year fix could work out cheaper than a two year one
• Take fast action to get a good mortgage deal
• Mortgage fraud levels up to £700 million a year

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