The number of mortgage products grew by 5.9 per cent in the past week in a sign the market is starting to recuperate, according to technology provider Mortgage Brain.
The number of products available last week stood at 8,044, marking the second consecutive week the number had risen, and up by 488 from the previous week.
The increase was mostly due to the remortgage sector, where product numbers went up by 5.4 per cent, while home mover products increased by 2 per cent, and buy-to-let products fell by 1.9 per cent.
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When compared to pre-pandemic levels, the number of mortgage products is still 6,630 – or 45 per cent – lower than the nine week average to March 16, however.
According to Mortgage Brain the latest increase in numbers reflected lenders returning to the market, increasing their LTVs and relaxing some of their criteria.
Last week Nationwide resumed lending up to 85 per cent to new customers. Specialist lender Hodge followed and lifted restrictions on its mortgages, after announcing interim changes to its lending criteria last month.
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Mark Lofthouse, CEO of Mortgage Brain, said the rise in product numbers in the past two weeks was “cause for cautious optimism”.
Describing the recent figures as “encouraging”, Mr Lofthouse added that “we could be at the end of the dramatic week on week reductions”.
Kevin Dunn, director at Furnley House, added: “Last week we thankfully saw the return to the market of some higher loan to value deals from some of the bigger lenders. Hopefully this will have a ripple effect to give other lenders the confidence to return more products to the market too.
“A higher increase in remortgage products makes sense, as often these are easier to complete without having to have a physical valuation.
“There are definitely some green shoots to suggest the market is slowly coming back.”
By Chloe Cheung
Source: FT Adviser