The number of mortgage products available last month exceeded 10,000 for the first time in nearly five years, according to brokerage the Mortgage Advice Bureau.
July’s average of 10,262 products is 33% higher than the 7,736 on offer last July, 97% up on the 5,208 products on offer three years ago and a massive 198% up on the 3,442 products on offer in July 2009.
MAB’s research also shows the average two-year fixed rate has fallen 1.05% to 3.63% in the year to July, while the average five-year fixed rate has fallen by 1.01% to 3.86%. This is widely believed to be as a result of the Funding for Lending scheme, which provides lenders with cheap funding in exchange for maintaining or increasing their net lending levels.
The typical homebuyer borrowed £159,391 in July, up 6% on £150,494 in January this year, while the typical homebuyer income increased 3% since January from £39,570 to £40,792. The average loan-to-value ratio of homebuyers increased from 3.8 in January to 3.91 in July.
The average borrowing for remortgage deals increased by 7% in the last year from £150,389 in July 2012 to £160,809 in July this year.
The typical equity put forward for remortgage deals fell 16% over the year, from £131,290 to £110,659 in July this year, while the average LTV rose by 3.9% to 60.6% in the twelve months to July 2013.