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| First-time buyers hit by drop in mortgage deals | First-time buyers hit by drop in mortgage deals |
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| First-time house buyers could find it more difficult to get onto the property ladder due to fewer mortgage deals with smaller deposits being on offer. | First-time house buyers could find it more difficult to get onto the property ladder due to fewer mortgage deals with smaller deposits being on offer. |
| Figures from research body Moneyfacts show there were 137 mortgage offers at 95% loan-to-value on Monday, compared to 347 at the start of 2022. | Figures from research body Moneyfacts show there were 137 mortgage offers at 95% loan-to-value on Monday, compared to 347 at the start of 2022. |
| The downward trend of such deals was accelerated after the mini-budget sparked turmoil on the markets. | The downward trend of such deals was accelerated after the mini-budget sparked turmoil on the markets. |
| Mortgage interest rates hit 14-year highs, but have since begun to fall. | Mortgage interest rates hit 14-year highs, but have since begun to fall. |
| Eleanor Williams , a finance expert at research body Moneyfacts, said first-time buyers were likely to feel the impact of the current climate "keenly" due to them often having smaller deposits and therefore favouring 95% loan-to-value mortgages. | Eleanor Williams , a finance expert at research body Moneyfacts, said first-time buyers were likely to feel the impact of the current climate "keenly" due to them often having smaller deposits and therefore favouring 95% loan-to-value mortgages. |
| On Monday, Moneyfacts said there were 137 95% loan-to-value mortgage products, compared to 283 on the day of the government's mini-budget. | On Monday, Moneyfacts said there were 137 95% loan-to-value mortgage products, compared to 283 on the day of the government's mini-budget. |
| "The mortgage sector is changeable at the moment, with the level of product choice fluctuating as lenders review their offerings and try to keep up with a changing economic outlook, which has meant that there are fewer products to choose from than there were prior to the recent fiscal announcement," Ms Williams added. | "The mortgage sector is changeable at the moment, with the level of product choice fluctuating as lenders review their offerings and try to keep up with a changing economic outlook, which has meant that there are fewer products to choose from than there were prior to the recent fiscal announcement," Ms Williams added. |
| She said that with the cost of living biting into household budgets, buyers looking for a low-deposit mortgage deal would also have concerns about meeting affordability requirements. | She said that with the cost of living biting into household budgets, buyers looking for a low-deposit mortgage deal would also have concerns about meeting affordability requirements. |
| Mortgage rates hit fresh 14-year highs | Mortgage rates hit fresh 14-year highs |
| Mortgage rates in general have been rising for months as central banks across the world try to tackle rising inflation, which is currently at 10.1% in the UK. | Mortgage rates in general have been rising for months as central banks across the world try to tackle rising inflation, which is currently at 10.1% in the UK. |
| But when the financial markets reacted badly to government's mini-budget last month, which promised billions of pounds of unfunded tax cuts, UK rates rose even higher. | But when the financial markets reacted badly to government's mini-budget last month, which promised billions of pounds of unfunded tax cuts, UK rates rose even higher. |
| Lenders also suspended hundreds of mortgage products amid uncertainty over how to price these long term loans. | Lenders also suspended hundreds of mortgage products amid uncertainty over how to price these long term loans. |
| Moneyfacts said the number of all types of mortgage deals available in the UK had recovered slightly to 3,067 - down from 3,961 on the morning of then Chancellor Kwasi Kwarteng's statement. | Moneyfacts said the number of all types of mortgage deals available in the UK had recovered slightly to 3,067 - down from 3,961 on the morning of then Chancellor Kwasi Kwarteng's statement. |
| On Monday, the largest number of deals from lenders was for 75% loan-to-value mortgages (583), the research said. | On Monday, the largest number of deals from lenders was for 75% loan-to-value mortgages (583), the research said. |
| The picture could change again, with the Bank of England expected to raise interest rates again in November in an attempt to bring down the current rate of inflation. | The picture could change again, with the Bank of England expected to raise interest rates again in November in an attempt to bring down the current rate of inflation. |
| Average two-and five-year fixed rates are currently at 6.55% and 6.43% respectively, levels not seen since the financial crisis of 2008. | Average two-and five-year fixed rates are currently at 6.55% and 6.43% respectively, levels not seen since the financial crisis of 2008. |
| At least 100,000 mortgage holders a month are coming to the end of fixed-rate deals, and face steep rises in monthly repayments. | At least 100,000 mortgage holders a month are coming to the end of fixed-rate deals, and face steep rises in monthly repayments. |
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