The number of mortgage products available has increased by 849 in just one year to reach its highest point since March 2008, according to Moneyfacts.
The financial information provider said there are now 4,460 mortgages on offer to UK borrowers, compared to 3,611 a year ago. But this is still way off the 6,192 products available in March 2008.
However, the breakdown of products was very different back in March 2008. The number of products at 60% loan-to-value (LTV) stood at just 24, whereas today that number is 549 – an increase of 525 products. 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.”