New data from the Mortgage Advice Bureau has indicated that a record number of mortgages were made available to borrowers in August 2014. Lender competition saw the Bureau’s National Mortgage Index recorded a 9% increase in products – the most that have been recorded since the index was first started in April 2009.
A new mortgage record
A total of 12,265 products were available in August, beating the previous record from December 2013, during which 12,106 products were recorded. But what are the reasons for this latest high? Firstly, it’s though that in a race to meet their end-of-year lending targets, mortgage lenders have been launching cheaper rates in recent weeks in an effort to attract new customers. Competition between mortgage lenders may also be a factor in the August 9% rise.
More deals from intermediaries
The number of new intermediary products rose at almost twice the rate of direct products, with 798 extra products available via brokers in August, rising from July. This dramatically contrasts with the 166 extra products being offered directly from mortgage lenders during the same period.
Mortgage experts respond
Brian Murphy, head of lending at Mortgage Advice Bureau, was positive about the findings, commenting the latest Mortgage Market Review has “Underlined the value of speaking to a broker to access the best choice of deals.” He also commented that the findings showed “Strong signs of enthusiasm from both lenders and consumers” with “lenders tripping over themselves to outdo one another with their latest deals.”
Murphy stated that the results were an encouraging sign in favour of the increased mortgage regulation introduced earlier this year, commenting that the findings “show that consumer choice remains intact: just with carefully monitored parameters in place to govern who can borrow and how much. It means the market recovery can continue on a steady footing and absorb the impact of the eventual base rate rise.”