Analysis by independent financial research company Defaqto has revealed that while there are now 33% more fixed rate mortgages and 36% more tracker mortgages available than there were 3 years ago, the number of discounted rate mortgage products available has fallen by an astonishing 72%.
David Black, Banking Specialist at Defaqto said: “There are significant differences in the Standard Variable Rates (SVR) being charged by lenders and given that discounted mortgages tend to be linked to the SVR this is a key reason for their decline in popularity. Lenders with competitive SVRs have little incentive to offer discounted mortgages because profit margins on their fixed and base rate tracker mortgages are better.”
Latest information on SVR mortgages is that:
| Mortgage type | July 2007 | Jan 2008 | July 2008 | Jan 2009 | July 2009 | Jan 2010 | July 2010 | % available in July 2010 compared to July 2007 |
| Discounted | 586 | 365 | 128 | 94 | 121 | 156 | 166 | -72% |
| Fixed | 1,426 | 1,492 | 910 | 996 | 1,032 | 1,352 | 1,890 | +33% |
| Tracker | 601 | 671 | 537 | 190 | 291 | 541 | 816 | +36% |
Source: www.defaqto.com
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