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Number of mortgage products at all-time low as lenders withdraw

THE VOLUME of mortgage products on offer has slumped to the lowest level on record, leaving homeowners with a severe lack of options for taking out loans as the recession continues to curb lending.<br /><br />Price comparison website Moneysupermarket.com said borrowers now have just 2,282 deals from which to choose, while first-time buyers have a range of only 1,195 products available to them.<br /><br />The options represent a meagre choice compared to those on offer at the zenith of the property boom in the summer of 2007, when homeowners could choose from more than 30,000 mortgages, while first-time buyers had an array of nearly 20,000 choices.<br /><br />Louise Cumming, head of mortgages at Moneysupermarket.com, said: &ldquo;Despite all the recent initiatives from the Government and Bank of England, the lack of credit is an ongoing problem.&rdquo;<br /><br />&ldquo;Unfortunately it is doubtful the number of products will increase significantly any time soon.<br /><br />&ldquo;Lenders are competing to attract the same borrowers &ndash; those that are seen to offer the least risk to the bank &ndash; and there is no sign of this trend changing.&rdquo;