Rise in product numbers continues

February 20, 2023 by Alan

Mortgage Advisors

The latest research by Moneyfacts has shown that the number of products that are available to borrowers is continuing to rise, with the total number now having risen above 4,000.

This marks the first time that there has been more than 4,000 mortgage products on offer from lenders since the late summer of last year. The number of loans that are on the market right now is 4,341, whereas during last month the total was reported as being 3,643. Therefore, we are seeing a very significant increase during the early part of this year.

What makes this even more striking is that product numbers hit a particular low during the autumn of 2022. In October, only 2,258 mortgages were available to borrowers, with that figure accounting for both variable and fixed rate loans.

Moneyfacts is also reporting that the shelf lives of products on the market are rising too. Last month, the average for a mortgage was just 15 days, which marked an all-time low, whereas now it is 28 days. This represents the equal longest average mortgage shelf life since the spring of last year.

Finally, the Moneyfacts research also revealed continued drops in average rates for fixed mortgages, with two-year fixed rates falling to 5.44%.

Rachel Springall from Moneyfacts argued that it was five-year fixed products where the rate competition among lenders was fiercest, though.

All of this will be identified by mortgage advisors with CeMAP training as being very good news for them, their clients, as well as for the mortgage market as a whole.