Big boost to mortgage products in August
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The last month has seen the biggest increase in mortgage products in over 20 months with over 1,500 new deals available, Mortgage Brain’s Monthly Product Analysis shows.
The total number of live products listed on its sourcing system increased by 25% in August, up from 6,081 to 7,618.
Whereas August 2009 saw just a 0.2% increase in product availability with the total number of products at 2,505.
Since then over 5,000 products have been introduced, a 204% increase.
Fixed rate products had a 31% increase with 1,179 new products during August bringing the total available to UK intermediaries to 5,020.
Variable rate products now represent 949 of all available products, their highest in over two years, after an 85% increase, 437 new products, during August.
But Trackers continue their downward trend by dropping for the third month in a row by 5%, but they remain the second most popular product type by representing 1,649 of all products.
A total of 350 new core lender products were introduced in August representing a 17% increase in availability.
Broker exclusives fared even better, witnessing a 29.9% increase to 1.187 new products.
There was also a modest 9.7% increase in lender direct products, bringing the total to 1,280.
Mark Lofthouse, chief executive officer of Mortgage Brain, says: “Compared to August 2009 the UK mortgage market has moved ahead leaps and bounds in terms of product availability, which is great news for all.
“This time last year our analysis showed that five new products were introduced during August. This year the number peaks at just over 1,500. The overall 12 month analysis is equally as impressive with 5,113 more products now available in the UK intermediary market than there was this time last year.
“Not surprising, the lion’s share of the increase is in products available to brokers to sell, which is substantially outstripping the increase in lender direct products.”
Readers' comments (2)
chris gardner | 2 Sep 2010 8:43 am
thats great news, but what the market needs is some real help for first time buyers. there needs to be some decent 95% ltv products without some of the ridiculous terms that are being applied by using family assets etc. there is nothing inherantly wrong with high ltv lending if the credit quality is maintained.
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GMS | 2 Sep 2010 10:31 am
Rising product numbers is great news and goes some way to helping the market recover. However unless we see some products with different criterial we end up with more of the same which will have little effect. First time buyers need access to higher LTV products. Why can MIG not be brought back, underwritten by the government if necessary. Now the bank bail outs seem assured, and likely to provide substantial returns why not shift the guarantees to the individual borrowers rather than the banks? A government backed MIG scheme could get the market moving properly and again provide potential returns for the coffers. Some element of adverse lending would be a massive boost to the market. People have been affected by the recession and may well have had the odd blip during the last 2 years. This needs to be addressed sooner rather than later. I would not advocate a return to the old sub prime maket, which was frankly ridiculous at the higher end but light adverse lending needs to happen again. Restrict LTV's, price for risk, and possibly offer a sliding scale of rates, reviewable downwards every 12 months subject to satisfactory conduct of the account. This would allow minor adverse borrowers to move back to prime with minimum fuss.
Until alternative and innovative products are put out there the increasing number of products will have little affect on the market.
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