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UK mortgage market 'improving'

Tuesday, March 09, 2010

Catherine Deshayes

Mortgage availability for homebuyers has improved over the past month, according to figures from the financial information service Moneyfacts.

At the start of March there were 1,798 mortgage deals available which required deposits of between 0% and 40%. That was 6% more availability than a month ago and 68% more than a year ago.

There are still very few mortgages available with just 0% or 5% deposits, but there are now 489 deals that ask for 10% or 15% down-payments. That is 90% more than a year ago when there were just 258 such loans on the market.

"There are a growing number of mortgage providers who are becoming a little more accommodating with their credit criteria and this bodes well for consumers who will benefit from a growing competitive mortgage market," said Michelle Slade of Moneyfacts.

"It is pleasing to see that the average mortgage rate is falling at the same time as deposit requirements are getting smaller," she added.

Source: www.bbc.co.uk