January sees 15% decline in number of mortgage products

Trigold\'s February Product Index shows the number of live mortgage products available to mortgage brokers dropped to 3,707 in January, a loss of 650 individual products compared with December 2008.

But broker activity increased significantly in January, with 54% more product searches being performed.

The average figure of mortgage products available in January is derived from a month in which there was relatively little activity as product numbers reached a high of 4,245 and fell to a low of 3,259.

Year on year analysis shows that live mortgage product availability dropped from 39,916 in January 2008 to just 3,707 in January 2009. This equates to a reduction of 36,209 individual products.

Trigold saw 744,825 mortgage sources performed in January which is an increase in broker activity of 54% when compared with December, an increase in broker activity in real terms of 261,133 individual mortgage searches.

This is just 48,798 fewer searches than January 2008, indicating that broker activity is returning to former levels.

David Aylmer, marketing and business development director at Trigold, says: “Although product numbers are at an all time low we have seen the average interest rates payable have fallen across the board, making products are more attractive.

“What we can take from this data is that the lower rates being released by lenders seem to be stimulating market activity and with today’s interest rate cut long may it continue!”