The mortgage market continues to regain strength, with the number of available products climbing above 10,000 for the first time in five years.
The number of mortgage products rose to 10,262 last month, according to the Mortgage Advice Bureau (MAB) – the first time the figure has exceeded 10,000 since 2008.
The number has risen by a third since the Funding for Lending Scheme began last year, and has almost doubled since the summer of 2009.
The news tallies with new figures from the Council of Mortgage Lenders (CML) showing that mortgage lending in July reached its highest level since October 2008, at £16.6 billion.
Meanwhile, Halifax's recent Mortgage Affordability Review revealed that the cost of mortgages as a proportion of income had almost halved over the last six years.
Mortgage payments accounted for almost half of a new borrower’s income (48%) six years ago compared to just over a quarter now (27%), the review said, as mortgages reached their most affordable level for 14 years (read more).
Mortgage Market "Ripe for Picking"
Brian Murphy, the head of lending at the MAB, said that mortgage availability remained in the shadow of its peak in 2007.
"At one stage, there were around 60,000 products,” he said. "They fell off a cliff when the credit crunch really hit."
However, he maintains that conditions are ample for consumers to benefit.
"With over 10,000 products on offer for the first time since the financial crash, consumers were spoilt for choice in July," he said.
"Since the start of the Funding for Lending Scheme began rates have fallen by one percentage point across two, three and five year fixes.
"The market is certainly ripe for picking, with the best choice of products and deals for years. Investing time to weigh up the options can really pay off in the long term."
Keith McDonald
Which4U Editor
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