Despite all the adverse newspaper headlines about the housing market and withdrawal of 100% mortgages, there are still plenty of good mortgage deals around.
In the past few years, there were some exceptionally cheap mortgages. This was because it was easy for lenders to resell mortgage debt in the form of CDO – collateralised Debt obligations. This meant mortgage lenders could parcel up and sell on mortgage debt to other financial institutions. Now with the credit crunch this is no longer so easy to do. Therefore, mortgage companies have greater difficulty financing mortgage lending but although, some of the most extreme types of mortgages 125% e.t.c have been pulled off the market, it would be easy to exaggerate any malaise in the housing market.
The market for mortgages still remains very competitive. We are unlikely to go back to the days of the bank and building society cartel. With the advent of the internet it will always be relatively easy to search online for the best mortgage deals.