Boost for market as mortgage product choice picks up after virus

Mortgage product choices for buyers have increased to the highest level in three months according to new data.

PropTech platform Mortgage Brain says last week saw product numbers grow by 3.3 per cent to a new high of 9,033. 

The total number of mortgage products on the market is now up by 21.7 per cent on the lowest point seen during the crisis, in the week ending April 12. 

However, it remains down on the levels seen before the pandemic, standing at 38.4 per cent lower than the nine-week average to mid-March. 

Mark Lofthouse, chief executive of Mortgage Brain, comments: “There is clear comfort to be taken in these figures. For three weeks in a row volumes have remained at levels close to those seen before the pandemic, which suggests that the growing activity in the market is sustainable, and not simply the result of pent-up demand from would-be homebuyers and remortgagers who were forced to put their plans on hold by the lockdown.

“While the improvement in product numbers is also welcome, there is still much progress to be made. Though the market below 80 per cent [Loan To Vanue] looks to be back on relatively stable footing, it’s evident that options are slim for those with a 15 per cent deposit or smaller. 

“A more substantial recovery will depend on lenders re-entering the market and offering a broader range of products, as well as more varied lending criteria.”