Competition between mortgage lenders saw the number of products available on the market leap by 9 per cent to reach record levels in August.
According to the National Mortgage Index from Mortgage Advice Bureau, a total of 12,265 products were available in August.
That’s the largest number in over five years since the index began tracking this data in April 2009, surpassing the previous record of 12,106 in December 2013.
The mortgage product range grew by 964 between July and August alone – the biggest monthly increase in over three years, since April 2011.
If you’re looking at mortgage products right now, it would pay to talk to a broker.
August saw almost five times as many new products available through brokers coming onto the market compared to new products offered direct from lenders.
The 8,576 broker products available in August was the largest total for 2014 to date and more than twice the number available direct from lenders (3,689).
Brian Murphy, head of lending at Mortgage Advice Bureau, comments:
“Looking at both supply and demand during August, there are strong signs of enthusiasm from both lenders and consumers.
“Despite the holiday season, we have still seen double-digit growth in mortgage applications year-on-year while lenders are tripping over themselves to outdo one another with their latest deals.
“It is an encouraging sign that healthy competition can continue under the new regime, and shows that consumer choice remains intact: just with carefully monitored parameters in place to govern who can borrow and how much.
“It means the market recovery can continue on a steady footing and absorb the impact of the eventual base rate rise.”
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