Mortgage products up by almost a quarter

The number of available mortgage products in March reached 3,725, up 24.87% from February shows the April Trigold Product Index.

There is also some encouragement regarding broker activity (taken from the number of times mortgage sourcing is performed) with the number of sources increasing slightly in March but Q1 taken as a whole shows a 40% increase compared with Q4 2008.

The average number of live products available to mortgage brokers rose from 2,983 in February to 3,725 in March – a rise of 742 individual products and an increase of 24.87%. 

The average figure is derived from a month (March) in which there was some significant activity as product numbers reached a high of 4601 and fell to a low of 2849.

Year on year analysis shows that live mortgage product availability dropped from 23,037 in March 2008 to just 3,725 in March 2009. This equates to a reduction of 19,312 individual products.

Some 802,707 mortgage sources were performed in March which is an increase in broker activity of just 1.45% when compared with February, a modest increase in broker activity in real terms of 11,452 individual mortgage searches.

This represents a massive 45% drop in broker activity from March 2008 and equates to 645,932 fewer individual mortgage searches performed.

The average monthly mortgage payment in March was £759.34 which is just £1.69 higher than the previous month but £154.30 cheaper than March 2008. 

David Aylmer, marketing and business development director at Trigold, says: “The increase in product numbers is very encouraging and although we’re still some way short of a return to the days where in excess of 60,000 products were available.

“February’s figures which showed product numbers dropping under the 3,000 mark for the first time was of some concern but these statistics show that the market has bounced straight back.

“Next months’ May Trigold Product Index will, for the first time, include direct products and so it will be interesting to see how this affects the number of searches performed and the average costs.”