Roy New, a sole broker based in London, said there had been a large decrease in the number of products being released by lenders, because they were holding back from launching new deals for fear of being hit by increased rates.
New said: “All the lenders have got deals ready to go, but if they bring out something really innovative, they could get hit by a rate rise. The worrying trend for rates is upwards at the moment and lenders are on tenterhooks. You’ve always got those who will come out with great deals regardless, but we’re waiting for someone to do that.”
However, Ray Boulger, senior technical manager for John Charcol, disagreed with New’s assessment. He said: “The worries about Base Rate will influence what products lenders put out, but that doesn’t stop them launching a variety of rates. I don’t think there is a lack of mortgage products. There is so much competition that lenders are always looking for ways of gaining a competitive edge.”
Julie Gaskin, corporate relations manager for GMAC-RFC, commented: “It may be some lenders are holding back, but GMAC-RFC has released more products and made changes within products than last year.”
“There has been more movement, with products being on the market for a shorter period of time. This year is a tougher year and people have to react quicker. Lenders have to look at being innovative, but products are not going to be as keen as
last year.”
