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Number of mortgage products hits post-recession high

The total number of mortgage products on the market has reached its highest level since the recession in 2008 as competition among lenders intensifies, according to Moneyfacts.

There are currently 4,460 mortgage products available, up from 3,611 in May last year, the largest year-on-year increase since Moneyfacts’ records began, and the highest level since March 2008 when there were 6,192 products available.

But while the market is now at its highest level since the financial crisis, Moneyfacts points out that the existing mortgage market is fundamentally a different place compared to March 2008.

For example, back in March 2008 the number of products at 60% loan-to-value stood at just 24, whereas today that number is 549 – an increase of a staggering 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, commented: “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.”

Mar-08

May-16

Nov-16

May-17

Total number of live products

6,192

3,611

4,162

4,460

Source: Moneyfacts

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