Mortgage market 'on road to recovery'

22 December 2009

Written by Steve Olejnik

The commercial mortgages market is in recovery, according to analysis from moneysupermarket.com.

It was found that the market as a whole has improved since reaching a low in August this year.

Since then, 13 per cent more mortgage products are available, although this is still 27 per cent below the amount in January.

Mortgage manager of the website Hannah-Mercedes Skenfield said: "It certainly seems that we could be on the long road to recovery."

A growth of 85 per cent was noted in loan-to-value (LTV) products - one-third higher than in January.

There are now 2,430 total mortgage products available on the market.

According to Ms Skenfield, lenders have been afraid to supply too many products because they did not want to end up with bad debt.

Resulting from this reluctance was a mortgage market of "tepid" products, she added.

According to the Council of Mortgage Lenders, gross mortgage lending reached approximately £12 billion in November - 14 per cent less than in the same month of 2008.

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