Rise in house purchase mortgage deals

Home buyers with a zero to 40% deposit currently have 1,798 mortgage deals to choose from, according to Moneyfacts.co.uk.

Researchers at the financial website have registered a 6% rise in the number of home loans on offer in the past month, taking the total up 68% year-on-year.

While those with 5% or less to put down continue to struggle, the number of mortgages demanding deposits of 10% to 15% have increased to 489, compared with 258 this time last year.

Moneyfacts spokeswoman, Michelle Slade, says: “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.”

She adds: “It is pleasing to see that the average mortgage rate is falling at the same time as deposit requirements are getting smaller.”

Recent rate cutters include Lloyds, RBS, Cheltenham & Gloucester, Northern Rock and Alliance & Leicester.

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