Fewer mortgages available

Date:Thursday 11th December 2008
Author: Rachel Fletcher

Fewer mortgages are available with choice especially restricted for those with small deposits, new figures have shown.

Moneyfacts blamed the recent loss of mortgage products on the fact that so many tracker mortgages have been withdrawn following the base rate cut.

Figures from the finance website, reported by the BBC, show that a month ago, 249 such deals were available.

But the number now is just 45.

Moneyfacts also said that the number of mortgage deals available has dropped by 65 per cent in the past year and by a quarter since the beginning of last month.

Spokesperson Michelle Slade explained: "With base rate falling to such a low level, many lenders are choosing to severely restrict the number of trackers they offer or not offer them at all."

Last week, Abbey temporarily withdrew its tracker rate mortgages after the base rate cut.

In a statement, it said that this was "to prevent excessive in-flows and the impact on service levels this would have".