Number of mortgages rockets to eight-year high
Borrowers choice of mortgage products has reached an eight-year high, according to research from Mortgage Advice Bureau.
It says there were an enormous 17,132 products available on the market in January – the highest number since March 2008.
This incredibly high number of mortgages represents an annual increase of over a third (34%), rising from 12,771 in January 2015.
And it is mortgages distributed through brokers that have really rocketed, seeing a much higher annual increase compared to direct-only products. The average number of broker products has shot up by 42% over the last year, dwarfing the 17% increase in direct-only deals.
Brian Murphy, head of lending at Mortgage Advice Bureau, said: “Not only are mortgage products increasingly affordable, with a sustained period of low interest driving down mortgage rates, but consumer choice is continually improving. Every borrower is different, so having a greater number of mortgage products available means they are more likely to find the perfect mortgage for their particular needs.”
In a fix
The research also revealed that the vast majority of borrowers chose fixed rate products, and the proportion has increased since last year. This was particularly true among remortgage borrowers, with the proportion opting for a fixed rate increasing from 87.5% to 91.0% annually. The same trend also applied to purchase borrowers: 94.7% chose a fixed rate in January.
Murphy added: “Borrowers tired of guessing when rates might rise may be tempted by the safety and security of fixed rates. These types of mortgages are attractive for borrowers who are comfortable with a longer-term commitment and prefer continuity of repayments.”