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Big boost to mortgage products in August

Friday, September 03, 2010

Source: Catherine Deshayes

The last month has seen the biggest increase in mortgage products in over 20 months with over 1,500 new deals available, Mortgage Brain's Monthly Product Analysis shows...

The total number of live products listed on its sourcing system increased by 25% in August, up from 6,081 to 7,618.

Whereas August 2009 saw just a 0.2% increase in product availability with the total number of products at 2,505.

Since then over 5,000 products have been introduced, a 204% increase.

Fixed rate products had a 31% increase with 1,179 new products during August bringing the total available to UK intermediaries to 5,020.

Variable rate products now represent 949 of all available products, their highest in over two years, after an 85% increase, 437 new products, during August.

But Trackers continue their downward trend by dropping for the third month in a row by 5%, but they remain the second most popular product type by representing 1,649 of all products.

A total of 350 new core lender products were introduced in August representing a 17% increase in availability.

Broker exclusives fared even better, witnessing a 29.9% increase to 1.187 new products.

There was also a modest 9.7% increase in lender direct products, bringing the total to 1,280.

Mark Lofthouse, chief executive officer of Mortgage Brain, says: "Compared to August 2009 the UK mortgage market has moved ahead leaps and bounds in terms of product availability, which is great news for all.

"This time last year our analysis showed that five new products were introduced during August. This year the number peaks at just over 1,500. The overall 12 month analysis is equally as impressive with 5,113 more products now available in the UK intermediary market than there was this time last year.

"Not surprising, the lion's share of the increase is in products available to brokers to sell, which is substantially outstripping the increase in lender direct products."

Source: www.mortgagestrategy.co.uk