By Tristan Stewart-Robertson
MORE than 38,000 different mortgage deals offered by lenders have disappeared in the past year, according to new figures exposing the growing credit crunch.
Mortgage Monitor, a group of independent analysts, said the number of deals on offer had dropped by 76 per cent in a year – 56 per cent in the past six months alone – making it harder for Britons to re-finance their homes
Mortgages available now are much more challenging, compared with 68,000 this time last year, the report, out today, claims.
The survey says this is because banks and building societies respond to the credit crunch by avoiding "higher risk" mortgages, particularly those that fix rates over a longer term, or require deposits of less than 10 per cent.
The most dramatic decline has been seen in the fixed-rate market, where a staggering 38,000 deals have vanished in the past year, shrinking the market by 82 per cent.
The tracker market has also been hit hard, with a 56 per cent fall. The "five-year" tracker has seen the biggest decline, with just 26 deals now, compared to 131 six months ago.
Tracy Collins, of the Guild of Independent Mortgage Advisers, said her clients are "panicking" and trying to renegotiate their mortgages even as the deals on offer get worse.
She said: "Clients are phoning up wanting to book a rate even when their redemption periods might not be up until the end of September. They want a deal in place now so they know what they will be paying."
Les Jacobs, the chairman of Mortgage Monitor, said more consumers were turning to services such as theirs to find the best deals possible.
He added: "We know that the number of mortgage deals available is on a dramatic decline, but there are still some good deals out there.
"It's a matter of being quick and taking advantage of those deals while you can."
The Royal Institution of Chartered Surveyors also warned at the weekend that UK house prices could fall at least 40 per cent this year as would-be buyers struggle to find a mortgage.
Consumer spending could slump by 8 per cent compared with a year ago, it added, also predicting house prices will fall 5 per cent this year, a more modest decline than some forecasts.