We have all heard in the news recently about how mortgage and loan companies are finding times hard at present and if you’re one of the many individuals who has applied for a home loan in the last few months, you may have experienced first hand, just how difficult it is to obtain a loan in the current market conditions.

But the full extent of the reduction in choice of mortgage products has only just become apparent, thanks to a survey by Mortgage Monitor, a market analysis company. With many lending companies closing their doors to new business and those who remain in the market, severely restricting their product range, the survey shows that the choice of mortgage product available has fallen by a massive 76%.

In April 2007, there were in excess of 68,000 different home loan deals to choose from, but by the same time this year the figure has plummeted to only 16,000 deals across the whole of the mortgage market. Many of the sub-prime and high loan to value loan products have simply vanished altogether and we are unlikely to see them return, particularly in the near future. Apart from that, the worst hit area is fixed rate deals. On this type of product alone, there are now 38,000 fewer deals than twelve months ago, an overall reduction of 82%.

On the back of this shocking news, it is perhaps not very surprising to learn that the number of potential borrower’s now seeking advice from Independent Financial Advisers (IFA’s) and specialist mortgage brokers has increased, as they find it harder to obtain a home loan by themselves. Figures from AIFA (Association of Independent Financial Advisers) show that the number of individuals seeking professional advice has risen by 50% from the same time last year.

This makes good sense, as the market shrinks, an independent broker has the ability to search the whole of the market (including many lenders and products which are not directly available to the general public) to find the best home loan, or mortgage to suit an individuals particular needs.