Mortgage product availability grows in 2011

The number of mortgage products obtainable through the mortgage broker and intermediaries has rose significantly over the past 12 months,

according to data from Mortgage Brain’s Monthly Product Analysis this month. Mortgage product availability rose by 87 per cent over the last year, boosting the total number of mortgage products on its sourcing system to 14,052 from the 7,515 recorded last year.

The substantial rise in the range of products available in the mortgage market was a result of the ten consecutive monthly increases throughout 2011 with increased number of best value mortgages entering the market through us as a large London mortgage broker. October and November saw slight declines however the overall yearly performance for 2011 has been the best in over three years with product availability falling three times in 2010 and five times in 2009.

Mortgage Brains Monthly Product analysis data revealed variable rate products were the best overall performers in 2011 despite representing the least number of mortgage products out of the three main product types in the mortgage market. November illustrated a third successive increase by 3 per cent in the product type, which in turn contributed to a massive 120 per cent increase in product availability during the past 12 months. The current figure as of 5th December 2011 now includes 2,329 variable rate products in contrast to the 1,058 that were listed this time last year.

Fixed rate products, which remain the most popular product type, accounting for 8,294 of all available products within the market, displaying a rise of 72 per cent in relation to the same period last year, following the 3,481 products introduced since December 2010. Tracker products saw little movements last month however overall product availability rose by 108 per cent also illustrating positive progress of the long term performance of this product type.

Mark Lofthouse, CEO of Mortgage Brain said “Our long term analysis clearly illustrates that the UK intermediary mortgage market has shown a real and significant improvement in terms of product choice and availability over the past 12 months.”

He added “There are now over 6,500 new products available and with strong rises being seen across all of the main product types, intermediaries now have more opportunities to source and advice on a greater variety of products.”