February 2010

Another increase in the number of mortgage products

According to moneysupermarket.com, that has been a rise in the number of mortgage products available.  This is great news for people buying, remortgaging and buy to let investors and it brings a bit more competition into the mortgage market.  However, the numbers are still way off the levels seen prior to the credit crunch in August 2007.

According to the price comparison website, in mid-January there were 2,516 mortgage products on offer in the market, breaking through the 2,500 mark for the first time since May 2009.

This was the fifth consecutive month that mortgage products increased but compared to August 2007 - prior to the collapse of Northern Rock, there were more than 30,000 mortgage products on the market. So as you can see, we are still a far cry from the mass lending days of 2006 & 2007. The likes of GMAC-RFC, Mortgage Express, Intelligent Finance, Bank of Ireland, Future Mortgages to name a few, have all but ceased lending in the last couple of years.  However, the likes of the Bank of China and other international lenders are entering the market with attractive rates, therefore increasing the competition which is good for the consumer.

My prediction is that we will see a continued steady rise in the number of mortgage products made available to consumers as we go into 2010.  The iceing on the cake would be to see a handful of lenders offering 95% mortgages (They do exist). However, this is only a wish and only the lenders can decide on this.

If you would like advice for a 95% mortgage, please call us on 0800 612 7688. 
 
Alternatively, please send us an enquiry. 

Marc d'Espagnac

The Mortgage Specialist Ltd