ResidentialJul 11 2017

Number of mortgage deals up 108% in two years

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Number of mortgage deals up 108% in two years

The number of mortgage products available to UK advisers has increased by 108 per cent over the past two years, according to data from Mortgage Brain.

An additional 5,172 mortgage products have been introduced into the UK mortgage market since the end of June 2015, representing a 108 per cent uplift in product availability, Mortgage Brain calculated.

A 48 per cent increase in product numbers over the past 12 months has also helped to take the total number of live mortgage products from mainstream lenders listed on Mortgage Brain’s sourcing systems to a new high of 9,973 (as of 26 June 2017).

The number of buy-to-let (BTL) mortgages has also seen a dramatic increase over the same period with 2,634 deals for landlords currently listed on Mortgage Brain’s systems – up 149 per cent from 1,058 in June 2015.

The improved competition in the market has not only seen lenders beefing up their product portfolios but also seen new lenders coming to market.David Hollingworth

Mortgage Brain’s latest analysis also showed a breakdown of product availability by loan-to-value (LTV) ratio for all mainstream lender products. 

While representing the smallest product type by volume, 90 per cent plus LTV products have shown the strongest performance over the past two years – increasing by 137 per cent from 187 in June 2015 to now stand at 443.

An additional 3,961 products over the past two years represents a 97 per cent uplift in the number of products with a 60 per cent LTV or more, with 8,034 products currently available to advisers.

Mark Lofthouse, chief executive of Mortgage Brain, said: “The rapid increase in product availability over the past two of years is not only great news for mortgage advisers but a clear indication of the significant improvements the UK mortgage market has made in terms of product choice and availability.

“There are now over 5,000 more products available, and with strong rises being seen across all areas, advisers now have more opportunities to source and advise on a greater variety of products, and importantly, continue to meet the changing needs of their clients and their mortgage requirements.”

David Hollingworth, associate director of communications at L&C Mortgages, said the increase in choice and range of products is great news for borrowers and offers brokers more opportunity to find a deal that will meet with their client’s individual circumstances.  

He said: “The improved competition in the market has not only seen lenders beefing up their product portfolios but also seen new lenders coming to market.

"The end result is a greater depth to the market which should open up more opportunities for borrowers to take advantage of the current low in interest rates.”

emma.hughes@ft.com