Brokers’ dominance is continuing to grow as new research shows they have access to 71 per cent of the total products on offer in the market.
Research by Mortgage Advice Bureau has revealed there were 15,838 products on offer in August – a 10 per cent increase from the 14,395 on offer in July.
This was driven by a 16 per cent increase in the number of broker products, which stood at 11,257 last month. This means brokers have access to 71 per cent of all products in the market – up from 68 per cent in July.
The growth in the number of products available to brokers mirrors their market share, which hit 69 per cent in the second quarter – 3 basis points of its all-time high.
Further, rates are continuing to fall, with the average two-year fixed rate dropping 103 basis points to 2.68 per cent in the year to August.
Five-year fixed rates experienced a similar fall, dropping 97 basis points to an average of 3.24 per cent over the same period.
MAB head of lending Brian Murphy says: “There has been a seismic shift over the last year as brokers have become an even bigger gateway for customers hoping to secure a mortgage. The product range has never been bigger since the recovery began and no single lender can hope to rival the choice available via a whole-of-market adviser.
“Rather than being overwhelmed by options, customers are increasingly leaning on brokers to do the legwork for them. Taking this step avoids the risk of consumers picking what looks like the most attractive headline rate, going direct to that lender and missing out on a wider choice of products that may be better suited to their needs.
“Fierce competition in the market is contributing to record low rates and a large volume of product launches. A base rate rise is still hovering in the background, but the second half of the year often sees lenders pricing with year-end targets in mind and looking to attract new business. Getting advice from a broker can help borrowers find the best solution from the thousands currently on offer.”