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Mortgage expert fears 'stagnating' market

The decline in mortgage choice is leading to a "stagnating" market, financial website Moneysupermarket.com has claimed.

Ongoing turbulence in the global financial markets has led to many home loans and personal loans lenders toughening up their credit criteria - either by raising rates or withdrawing products altogether.

Recent research from Moneyfacts.co.uk has shown that 60 per cent fewer mortgage deals, for example, are on offer compared to last year.

Head of mortgage services at Moneysupermarket.com, Louise Cuming, commented: "Lending is subdued: the amount of loans that are being completed are declining, the number of first time buyers actively looking for houses has gone down and there's a lack of confidence so people are less willing to move up the ladder and have decided to stay put…it's stagnating the market."

She added: "First time buyers are the life blood of the industry because those are the one that keep the cycle going. Without first time buyers, the whole market doesn't move."

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