"This increase to product numbers is largely due to the amount of competition in the market"
According to the data released, the number of products available on the market has increased from 3,611 in May 2016 to 4,460. However this figure remains well below the 6,192 products available in March 2008.
Moneyfacts stressed that the current mortgage market is "fundamentally a different place" compared to March 2008 when the number of products at 60% LTV stood at just 24 compared to 549 today. Conversely, back in 2008 there were 575 deals available at 95% LTV, whereas today there are 257.
Charlotte Nelson, Finance Expert at Moneyfacts, said: “This increase to product numbers is largely due to the amount of competition in the market. Lenders are currently faced with borrowers who lack the motivation to switch from their Standard Variable Rate, meaning providers could potentially lose a sizeable chunk of their mortgage book very quickly. This uncertainty means providers now have to remain on top of their game to ensure they look attractive when borrowers start to consider remortgaging.
Providers today do not only need to be price sensitive, but also offer borrowers a variety of features, to allow the customer to almost be able to tailor the mortgage to suit their needs. Given the multiple scenarios lenders now cater for, it is little wonder the market has seen product numbers shoot up.
When property prices were rising at an incredibly fast pace back in 2008, lending wasn’t based on risk. These figures show that we have moved to a more structured market, with the number of deals clearly sorted according to risk and borrowers now rewarded for having extra equity.
Alongside this, the Mortgage Market Review has stabilised the market, making lending more robust, meaning providers can now focus on the life of the mortgage rather than the short-termism of the past.
While the boost in product numbers can only be seen as a good thing, the more choice borrowers have, the more confusing it can be, so it is more important than ever that they seek advice to ensure they get the best deal for them.”