Analysis from Britain's number one comparison site, moneysupermarket.com, has shown that the number of mortgage products available on the market has broken through the 3,000 barrier for the first time since July 2009, when the market reached its lowest point following the financial crisis. However the total number of mortgage products available is still 90 per cent down from three years ago.
In June 2007 there were a total of 28,413 mortgage products available; this fell to a low of 2,177 in July 2009, but we have seen a 42 per cent increase since then with the current number of mortgage products sitting at 3,100. The most significant growth has been in five year fixed products, which have increased by ten times the number available since June 2009.
Hannah-Mercedes Skenfield, mortgage manager at moneysupermarket.com, said: "The financial crisis really hit the mortgage market hard with the number of products falling by a massive 92 per cent. After a period of uncertainty in the market, in 2010 we have started to see confidence return, and although we are still a long way off the highs of 2007, it is encouraging for consumers that banks and building societies are starting to return to the market.
"Over the past couple of months we have also started to see some relaxation in the number of products for borrowers with small deposits, with a number of lenders reintroducing products offering 85 and 90 per cent mortgages. Good news particularly for first time buyers.
"I expect the upward trend in the number of products to continue so if you are looking for a mortgage, now is a good time as there is more choice."
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