Mortgage availability 'down by 40%'

Financial website Moneyfacts has said that the number of mortgages available on the UK market has fallen sharply over the past three months.

The total number of buy-to-let and residential products has dropped by 40 per cent during the last quarter, with the sub-prime sector especially badly hit, Moneyfacts has noted.

Mortgage deals for borrowers in this category have fallen by 54 per cent in the residential sector and by 72 per cent in the buy-to-let sector, the website added.

"Within three months, what was the fastest growing mortgage market is now suffering the biggest decline," said Moneyfacts mortgage expert Julia Harris.

"In general it's the higher risk products, which have been pulled, while many existing products have also seen more conservative limits applied.

"The maximum LTVs have fallen, self certification products have seen a decline, and borrowers are now less likely to find a sub prime lender that will accept extra heavy or unlimited adverse credit," Ms Harris added.

The findings come as broker John Charcol has also warned that more borrowers will be unable to afford the more expensive deals coming to market.

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