Mortgages becoming more accessible

Moneyfacts, a financial information service, has stated that the cost of mortgages is continuing to fall and they are now becoming more available for certain borrowers.

Availability for 20% deposit home loans has increased whilst the number of home loans available for those offering 40% has dropped. This is a shift from the trend seen in recent months, which has seen the best rates offered to those able to pay the largest deposits.

According to the recent study, the number of mortgages available for people offering a deposit of 10% or less remained small. This statement demonstrates the difficulty that first-time buyers are having in getting involved with the property market and acquiring a mortgage for their first home.

Alternatively, anyone who is able to obtain deposit of 20% has seen an increase this September with a choice of up to 352 mortgage products. This is in comparison to the 326 in August and 166 at the beginning of the year.

Darren Cook of Moneyfacts stated: "When banks increase the level that they are willing to lend against the value of a property, this usually means that risk increases and rates go up."

Average mortgage rates however are continuing with their slow decline, which could indicate that lenders are finally understanding the dangers of a new mortgage environment. Cook added: "Unfortunately this is still not filtering through to increase the number of mortgages approved and the market remains stagnant."