The latest figures from TrigoldCrystal’s mortgage product index show that in the 12 months from May 2009, the level of mortgage products in the UK has increased by over 1,000 from 3,606 to 4,989 and over 2,000 more from the lowest point of the market in August 2009.
The sourcing system says although this is great news for intermediaries and consumers looking for greater choice in the market, TrigoldCrystal show that the greatest increase in product numbers over the last year has been among direct products where lenders, particularly high street lenders, have introduced nearly twice as many direct products as intermediary products in a market which until earlier on in the year had over twice as many products available.
David Aylmer, business development and marketing director at TrigoldCrystal, says: “This is great news for the market as a whole, but when analysed it still shows a continued trend by the banks towards boosting their direct sales channels. Though we welcome the increase in choice for everybody, the fact that the direct market rose by 845 products over the past year at the same time we only saw a rise of 489 in the intermediary channel is a concern. “
He adds: “Although we have seen calls by all the major parties in the run up to the general election for banks to get lending again, this is clearly not happening. If and when it does, banks will have to rely on intermediaries to boost business and though this will necessarily coincide with an increase in product numbers in this area, we hope for the sake of the banks that they have not alienated their friends in this sector of the market.”