According to a recently published report, the number of mortgage products available to borrowers has reached the highest level for seven years.
The National Mortgage Index, released by the Mortgage Advice Bureau, states that 15,838 products were currently available to borrowers, the highest number since 2008. This is due to the increased competition between lenders, as borrowers look for some of the lowest deals available in anticipation of an increase in interest rates.
The rise in the number of products available represents a 10 per cent increase on the number for July, which stood at 14,395. This was the biggest increase since 2011. According to the report, the significant increase was due to more broker products being released. The head of lending at MAB, Brian Murphy, said:
“Fierce competition in the market is contributing to record low rates and a large volume of product launches.”
“A base rate rise is still hovering in the background, but the second half of the year often sees lenders pricing with with year-end targets in mind and looking to attract new business.”
The number of mortgages that have been approved also rose to the highest level in 19 months. This is believed to be due to the fears of an impending interest rate rise. Another survey revealed that significantly more people now consider that interest rates will rise, with 28 per cent this is likely in comparison to the number in February at 16 per cent.
With so many mortgage products available, many borrowers require the skills of a CeMAP qualified mortgage adviser.