Research by award winning mortgage adviser, Alexander Hall, has revealed that homebuyers are currently benefiting from a greater abundance of choice when it comes to the number of mortgage products available to them, with this increased competition amongst lenders potentially leading to more favourable borrowing costs.
Alexander Hall looked at the estimated number of mortgage products currently available across each segment of the market and how this number has changed both since the Autumn Budget and on an annual basis.
The research shows that borrowers have benefited from an increase in choice across the board .
Buy-to-let investors have benefited to the greatest extent, with some 2,220 products currently available, up 12.9% over the last year and 7.9% since the Autumn Statement in October last year alone.
First-time buyers have also seen a considerable improvement when it comes to mortgage market choice. It’s estimated that there are currently some 694 mortgage products available to first-time buyers, up 2.7% since the Autumn Budget and 11% higher versus a year ago.
Home movers have seen mortgage product availability climb by 4.8% since the Autumn Budget alone, with those looking to remortgage having seen a 4.7% increase in the number of products available to them.
Stephanie Daley, Director of Partnerships at mortgage advisor, Alexander Hall, commented:
“Whilst Bank of England rates have started to reduce, we’re yet to see any notable improvement with respect to mortgage rates and, in fact, our previous research shows that the average mortgage rate is currently around 8% higher than it was a year ago.
However, the good news for homebuyers is that mortgage product availability has improved and there is now a greater degree of choice, with more options available to them even in the few short months since the Autumn Budget.
Specifically, for first-time buyers, not only has the number of products available increased but so has the number of lenders who are now offering higher income multiples to help ease the affordability challenge when getting on the ladder.
Over the past few months, we have seen Halifax launch their FTB boost and Nationwide improve their helping hand proposition, which now also includes home movers. Plus lenders such as Skipton and Accord are offering creative solutions for lower deposit options meaning there are more ways to get on the property ladder than people often think.
Given there are more products available this means that lenders will be facing increased competition and so they may be more inclined to lower rates in order to win business. This highlights the importance of getting a whole of market view before deciding on a mortgage and it’s advisable to always consult a well renowned mortgage adviser before simply opting for the deal offered by your high-street bank.”
