The mortgage market in the UK improved slightly across 2012, it has been noted.
Clare Francis, site editor at MoneySupermarket, explained the Funding for Lending Scheme (FLS) resulted in greater home loan availability among individuals with smaller deposits during the 12-month period.
Ms Francis also noted rates have become more competitive, while the continuation of the FLS in 2013 should see the impact of the initiative having a bearing on the success of the residential mortgage market.
Such movement might therefore lead to an increasing number of lenders providing competitive 90 per cent loan-to-value products next year.
Despite this, Ms Francis warned the trend for higher fees could be set to continue. The expert stated: “It’s therefore really important that people don’t get blinded by the headline rate when comparing mortgage deals and that they factor in the impact of the fee as well.”
According to the price comparison website – which analyses more than 60 mortgage lenders – interest-only home loans could become increasingly popular in the next 12 months, with the Financial Services Authority also claiming the products will have a big role to play.
