Mortgage costs 'going up'

Mortgage costs are being pushed up as the credit crunch continues to bite, an expert on the industry has said.

Louise Cuming, head of mortgage services at moneysupermarket.com, stated the situation was occurring as lenders took an increasingly "pessimistic" view of risk following the subprime experience in the US.

She commented that that the situation has moved from simply excluding those with bad credit histories to hitting all kinds of vulnerable people, due to the lack of liquidity in the market.

As a result, she stated, the number of products available was diminishing and as well as this "the products that are available are being priced at a premium rate so costs are going up".

A survey by Moneyfacts this month found that the number of mortgage deals available has fallen by 60 per cent in the last year.

Those seeking to get on the housing ladder may decide to opt for self build rather than struggle to get a mortgage or face higher costs.


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