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Mortgage products at 20-month high
01 September 2010
Over 1,500 mortgage schemes were introduced into the UK mortgage market in August indicating the biggest monthly increase in over 20 months, according to a monthly product survey from Mortgage Brain. The figures show a 25% jump in product numbers listed on Mortgage Brain in a single month, up from 6,081 on 2 August 2010 to 7,618 by 30 August 2010. The figures suggest three hundred and fifty new core lender products were introduced in August, with broker exclusives also jumping by 29.9%, with 1.187 extra new products. There was also a modest 9.7% increase in lender direct products, bringing the total to 1,280. The sharp rise in lending activity this August is in stark contrast to the 0.2% rise recorded last August adding little to a product total then of 2,505. Since then over 5,000 products have been introduced, which is a 204% increase, bringing today's figures to an all new high, said Mortgage Brain. The number of fixed rates launched last month rose by 31%, more than any other product type, bringing the number offered to UK intermediaries to 5,020 - up from 3,841 on 2nd August 2010. Variable rate products also leapt by 85% with 437 new products launched in August. Trackers continue their downward trend, however, dropping for the third month in a row (5%) but still hold their ground as the second most popular product type at 1,649. Mark Lofthouse, chief executive of Mortgage Brain, said: "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. "Unsurprisingly, 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." Published by Mortgage Solutions
