More than 15,000 mortgages on the market
Data compiled by Mortgage Advice Bureau found that a 10% increase in mortgage products occurred between July and August, causing product numbers to hit 15,838.
The firm said competition between lenders was increasing as rates continued to fall across the market.
However, there was a divide between the number of products available direct and those which are available through mortgage brokers. Compared to the previous month the number of products available direct dropped by 2% to 4,581.
At the same time mortgage broker products grew by 16% to reach 11,257. This means mortgage broker only products now account for 71% of the total market.
Rates continued to fall, with the average two-year fix now on offer at 2.68%. This is considerably lower than the 3.71% recorded in August 2014.
Three- and five-year fixed rates also fell by 0.68% and 0.97% respectively.
Brian Murphy, head of lending at Mortgage Advice Bureau, said borrowers should take advantage of the current low rates on offer.
“There has been a seismic shift over the last year as brokers have become an even bigger gateway for customers hoping to secure a mortgage,” he 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 year-end targets in mind and looking to attract new business. Getting advice from a broker can help borrowers find the best solution from the thousands currently on offer.”
“Rather than being overwhelmed by options, customers are increasingly leaning on brokers to do the legwork for them. Taking this step avoids the risk of consumers picking what looks like the most attractive headline rate, going direct to that lender and missing out on a wider choice of products that may be better suited to their needs.”