Mortgage Brain figures show that variable rate products saw the biggest increase in numbers, continuing a five month upwards trend, with 409 live variable rate products, up 7% in the past month.
The number of fixed rate products rose by 3% following a drop during March with current figures listing 2,921 available products – up from 2,840 on 5th April 2010.
Trackers dropped for the second month in a row to stand at 1,423 (as of 5th May 2010), down 1% from 1,441 during April.
Moneyfacts’ head of press and PR Darren Cook says they are also seeing the number of products available increasing.
The site recorded 2,390 products in early May, versus 2,217 in early April.
Cook also noted that as well as the number of products increasing, pricing was also becoming more competitive, with the average rates on 2-year fixes decreasing.
He said: “Lenders are clearly competing for business which is reflected in their pricing. The good news is that an environment is now developing to allow for resurgence when the demand is there from the customer.”
SVRs have been low for such a long time that Cook says it is dampening demand for new mortgage products.
Sourcing system TrigoldCrystal is also showing an increase in the number of products on the market, with 5,441 listed today (Tuesday 11th May 2010).
David Aylmer, business development and marketing director at Trigold, said they have seen a steady increase in the number of products on the market in 2010, and that the expanding choice and availability was “good news” for brokers.
However, Aylmer noted that the number of products in the direct market rose by 845 over the past year, whereas the intermediary market only saw a rise of 489.
He said: “This is great news for the market as a whole, but when analysed it still shows a continued trend by the banks towards boosting their direct sales channels. Though we welcome the increase in choice for everybody, this is a concern. “
Confusion
But George Monty, products and data director at CDS Mortgages, a sourcing system currently representing 75% of the market, claims that Mortgage Brain and TrigoldCrystal are overestimating the number of products lenders have on offer by counting the same product more than once.
He added: “The number of products on the market is clearly increasing though, and we’ve seen a noticeable rise in the number of complex prime products on offer.
“Aldermore is currently running a few test products with several brokers ahead of its launch, and iGroup, part of GE Money, has also recently added in more complex prime elements into its products.”
Paul White, consultant at London-based IFA Belgravia Insurance Consultants, said he had seen an increase in the choices on offer. On a 75.33% LTV mortgage White put through yesterday, he said there were many more options available than there would have been a year ago.
He added: “I would have thought it makes sense for lenders to focus on increasing products available via intermediaries because broker conversion rates are so considerably higher than direct to consumer.”
Mark Lofthouse, CEO of Mortgage Brain said: “Considering the turbulent year we’ve had being able to report an increase in overall mortgage product availability for nine out of the last 10 months is great news for the industry.”
He added: “Bar the slight drop in the number of trackers, product availability is up across all areas again and the longer term analysis is still showing vast improvements with a 43% increase in mortgage product availability being seen compared to this time last year.”
