Lenders are not forgetting the market for so-called jumbo mortgages of more than £500,000 despite the credit crunch, new figures from mform.co.uk show.
More than one in three high street lenders still offer loans for £500,000 and above with more than 40 mortgage firms offering over 200 two-year deals and 188 five-year deals direct to consumers, its research shows.
Even above £1 million there are still 33 mortgage lenders competing for business direct from the public with 153 different two-year mortgages on offer.
mform.co.uk believes the continuing relative health of the jumbo market is driven by wealthier borrowers with high percentages of equity in their homes. They are better able to weather the credit crunch and some are trying to bag a bargain as house prices fall. These borrowers can still afford large mortgages and are also seen as good risks by lenders.
The most competitive initial rates on £500,000 loans start around 5.49% on a two-year discounted deal while on £1 million rates are around 5.69%.
