Home movers who need to borrow up to 95 per cent of the value of their house can still choose from around 41 lenders offering 405 products direct to the public despite the mortgage market turmoil, new analysis* from mform.co.uk shows.

The credit crunch and restrictions on mortgage availability has meant the death of the 100 per cent mortgage and switched the spotlight to 95 per cent loans, the online mortgage company says. Nationwide Building Society has become the latest to withdraw from the 95 per cent LTV market for all but a few products.

mform.co.uk research shows the number of lenders in the 95 per cent loans market has dropped from more than 90 at this time last year to around 41 now. Lenders who still offer up to 95 per cent include Halifax, Coventry Building Society and Woolwich.

Companies which now do not offer 95 per cent loans routinely include Cheltenham & Gloucester, Co-operative Bank, Intelligent Finance, Standard Life Bank and Britannia Building Society.

Rates and fees have increased as the number of lenders offering 95 per cent mortgages has decreased. The majority of products available to customers requiring 95 per cent loans are fixed rates. The lowest two-year fixed rates on offer are currently around 5.59% per cent but go as high as 7.89% per cent. Typical fees are around £2,000 including valuation, application fees and administration charges

Francis Ghiloni, mform.co.uk's Marketing and Business Development Director, said: "The mortgage market focus has switched to availability with lenders pulling products and raising rates at short notice.

"Borrowers who need loans of up to 95 per cent can still secure competitive deals but the choice is restricted with some major lenders cutting back to 90 per cent.

"Borrowers who have substantial equity in their home or high deposits are in a stronger position but that should not mean people without substantial deposits should take the first mortgage they can get.

"They should be focusing on the true cost of their loan taking into account all fees as well as the monthly repayments. And with house prices falling there is a real risk of negative equity for anyone taking a 95 per cent mortgage and anyone doing so should compare the deals carefully."

mform.co.uk offers a unique free service linking mortgage customers directly to the application systems of lenders. It is the only website which allows borrowers to search the whole market for the best products ranked on true cost and to apply directly to lenders.

The service is completely independent and is not influenced by commercial deals or advertisements. There are no distracting sponsored links and borrowers can also research mortgage product features and lenders' service levels.

mform.co.uk works with lenders by enabling them to link with informed mortgage customers and by reducing lenders' costs allows them to pass on savings to customers.

The service, which is free and easy to use, can be found at www.mform.co.uk .

Notes to editors:
* mform.co.uk's own analysis April 25th 2008 All figures quoted refer to home movers purchasing a property located in England valued at £200,000.

For more information contact:

mform.co.uk : Francis Ghiloni/Gordon Swan 0131 556 4845

Citigate Dewe Rogerson : Kevan Reilly/Jonathan Henderson on 0207 638 9571

About mform.co.uk

mform.co.uk enables people to simplify the process of choosing a mortgage by identifying the best ones for them based on a range of criteria, including cost and product features such as the ability to make over-payments.

The free service enables consumers to source personalised all-round best buys rather than deals based on headline interest rates or led by sponsorship deals and advertisements. . It provides information on the standard of service of lenders' application processes and there are no sponsored links promoting mortgage products.

Jonathan Henderson Citigate Dewe Rogerson 3 London Wall Buildings London Wall London EC2M 5SY

Switchboard: 0207 638 9571
Direct Line: 0207 282 1057
Direct Fax: 0207 282 1042
Email: jonathan.henderson@citigatedr.co.uk

For more information see: www.citigatedewerogerson.com