Mortgage products in 7 year high
By |Published On: 30th September 2015|

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Mortgage products in 7 year high

By |Published On: 30th September 2015|

This article is an external press release originally published on the Landlord News website, which has now been migrated to the Just Landlords blog.

New data indicates that the total number of mortgage products has risen to their highest level for over seven years.

The Mortgage Advice Bureau has released figures indicating that the number of products has passed 15,000 for the first time since the recession.

Spoilt for choice

During August, there were 15,838 products on the market, representing a 10% increase from July and the largest monthly percentage rise since April 2011. This was driven by a 16% growth in broker products from July to August.[1]

Despite the jump in broker products, the number of direct-only products fell by 2% from 4,658 in July to 4,581 in August. As a result, brokers’ share of the total product range increased from 68% to 71%, with the direct-only share falling from 32% to 29%.[1]

The table below indicates the difference in the rise between broker products and direct products:

Broker products (average) Broker monthly change Direct products (average) Direct monthly change
Aug-14 8,576 10% 3,689 5%
Sep-14 8,542 0% 3,527 ¯ 4%
Oct-14 8,812 3% 3,663 4%
Nov-14 8,694 ¯ 1% 3,648 0%
Dec-14 8,560 ¯ 2% 4,365 20%
Jan-15 8,555 0% 4,217 ¯ 3%
Feb-15 8,768 2% 4,172 ¯ 1%
Mar-15 9,126 4% 4,199 1%
Apr-15 9,309 2% 4,230 1%
May-15 9,384 1% 4,594 9%
Jun-15 9,602 2% 4,631 1%
Jul-15 9,737 1% 4,658 1%
Aug-15 11,257 16% 4,581 ¯ 2%



With total product numbers at their best level since the financial crisis, average rents continued to drop to all-time lows in August. Lending competition and the record low base rate of 0.5% continue to push prices down.

Two-year fixed rates saw the largest annual fall to 2.68%, falling from 3.71% in 2014. Three and five-year fixes also fell to new lows. Additionally, two-year tracker rates slipped from 2.66% in August 2014 to 2.01% this month. This however was marginally higher than the low of 2.00% recorded in July.[1]

Mortgage products in 7 year high

Mortgage products in 7 year high

Brian Murphy, head of lending at the Mortgage Advice Bureau observed that 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 continued by saying that,’ the product range has never been bigger since the recovery began and no single lender can hope to rival the choice available via a whole-of-market adviser.’[1]

Better suited

Mr Murphy went on to say, ‘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.’[1]

‘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.’[1]





About the Author: Em Morley (she/they)

Em is the Content Marketing Manager for Just Landlords, with over five years of experience writing for insurance and property websites. Together with the knowledge and expertise of the Just Landlords underwriting team, Em aims to provide those in the property industry with helpful resources. When she’s not at her computer researching and writing property and insurance guides, you’ll find her exploring the British countryside, searching for geocaches.

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