Mortgage products at 15-month high
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The number of mortgage products available to brokers is at its highest since December 2008, according to figures from Mortgage Brain.
The total number of broker products listed on Mortgage Brain’s sourcing system hit 4,876 as at March 1, up 9% from the 4,457 available products in February.
Broker product numbers have now rising for eight consecutive months.
Product availability has improved by 79% compared to this time last year, and is up by a massive 95% from six months ago.
The number of fixed rate products has continued to rise, up 8% last month to reach 2,884 products.
Variable rate products are up slightly, going from 359 in February to 369 currently.
An increasing number of trackers have been launched in light of the record low 0.5% Bank of England base rate, which has now stayed stagnant for a year.
Long-term analysis shows the number of trackers has shot up 200% compared to the same time last year.
There are 1,623 trackers available to brokers, up from 1,434 in February.
Mark Lofthouse, CEO of Mortgage Brain, says: “The current, mid and long-term analysis of our data is really starting to show a clear picture of market stability and the forward movement that is been made in the mortgage industry.
“We are now regularly seeing increases in product availability in all areas, which is particularly encouraging.”
Readers' comments (6)
Anonymous | 5 Mar 2010 2:23 pm
Yes but remortgage volumes will still stay low until someone on the MPC shows they want to raise the base rate or until lenders in large numbers raise variable rates or until the media start actively encouraging borrowers to change onto a fixed or tracker rate.
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Anonymous | 5 Mar 2010 2:31 pm
This is fantastic news, but..
The real question really is whether these increase in product numbers are because the lenders are actually willing to lend more, or are just window dressing by releasing more and more variants of the same type of product!
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Graham Griffin | 5 Mar 2010 2:41 pm
The issue for me isn't the number of providers... it's the multiples/affordability being applied that is affecting the best deal available. What's the point of offering 90% LTVs with 3-3.5 x income? I'm not suggesting inconsiderate lending. What I'm advocating is treating each case on its merits.
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Jonnie Diamond | 5 Mar 2010 3:21 pm
Isn't it about time the continual and futile claims of the sourcing companies came to an end.
In the past we had Messrs Lofthouse, Saffron and Griffiths claiming they had highest proportion of the mortgage intermediaries using their systems; now we have their (well 2 of the above), and others claiming insight into product, market and sales trends.
I stand to be corrected, but Mr Lofthouse and co have never actually broked a mortgage, let alone even worked in lending operations.
The number of brokers using these systems must be at an all time low as brokers abandon providing mortgage advice, as reported earlier in the week. Likewise the number of available products are so low; that quotes of 9 or even 96% increases are pretty much meaningless. I can’t see how these claims can be substantiated especially as the products available to independent brokers have remained unchanged, looks to me that most of these changes are through exclusive deals for networks.
When will these sourcing companies realise that we, as brokers see the value they bring and don’t really need them, apart from the single reason of proving we’re acting responsibly and abiding by regulation. If they all went to the wall none of the guys in my practice, or others I know of would be crying.
Let’s (continue) get some real insight as to what’s happening – from brokers and lenders. And, Mortgage Strategy, you do a great job in that respect, keep up the good work!
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Anonymous | 5 Mar 2010 3:26 pm
Until a specialist lender is prepared to open up the adverse market there will be no effect whatsoever. Not to the levels of adverse we saw before, but to a sensible level based on common sense underwriting. Lets face it, the recession and credit crunch has forced previously prime borrowers to be labelled as sub prime and therefore unable to remortgage. These people need chance to get themselves back on track.
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Anonymous | 8 Mar 2010 8:02 am
Its the quality not the quantity of products we need to revive the market and safeguard our livelihood.
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