Storage could be a solution to mortgage market turmoil

10 October 2008

Homeowners looking to buy a larger property are likely to have to do so without having access to a mortgage product with a high loan-to-value ratio, it has been revealed.

According to figures released by Moneyfacts, there are now just 3,281 mortgage products available on the market - the lowest number since the full impact of the credit crunch was first felt.

Products most likely to have disappeared are those with loan-to-value ratings of between 95 and 90 per cent.

As such, those looking to move up the property ladder in order to create more room might be better off moving unwanted items into storage in order to secure more space.

Commenting on the problems in the mortgage market, Darren Cook, mortgage expert at Moneyfacts.co.uk, commented: "The difficulties lie in the lack of liquidity within the market and providers having no appetite or being unable to lend on a larger scale.

"In essence, the price list shows that mortgages are getting a little cheaper, but the stock rooms are currently nearly empty."

Those looking to buy a new home are often prepared to pay up to £20,000 more for a property close to the countryside, Halifax research shows.


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