New home buyers can now choose from the largest amount of mortgage products on the market since the recession began, according to one price comparison site.
Moneysupermarket.com found that there are 2,500 products for the first time since May 2009.
Hannah-Mercedes Skenfield, mortgages channel manager at the site, said: "This is also now the third successive month on month growth of available products, which suggests the increases are sustainable.
"But we are clearly a long way short of a full recovery but we are at least moving in the right direction."
She added that the rise in the number of rates and deals available indicated that lenders were beginning to compete for homebuyers by offering them more choice.
New products this week on the market included a 2.63 per cent tracker from Woolwich, several improved tracker rates from Halifax and two rates from Accord suitable for borrowers with smaller deposits.
David Hollingworth of brokers London & County today told the Telegraph newspaper that smaller building societies were more likely to raise rates, but larger banks were still able to offer choice.
He said small building societies were in "intense competition for funding from savers' deposits and the cost of the levy to pay for the savers' compensation scheme," while "bigger banks are not under the same pressure because they enjoy benefits of scale."
See Also: Property News (6699)
Date Published: 22 January 2010
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