When it comes to the number of mortgage products available, home buyers are profiting from larger options, and competition among lenders increases potentially leading to more favorable borrowing costs.
According to new research by mortgage consultant Alexander Hall, the study examines the estimated number of collateral products currently available in each market segment and how that number has changed since the fall budget.
Research shows that borrowers benefit from a comprehensive increase in choices.
Investors who purchase volume benefited the most, with around 2,220 products currently, second only to the fall statement last October, up 12.9% from last year.
First-time home buyers also see considerable improvements in mortgage market selection. It is estimated that 694 mortgage products are available for first-time buyers, up 2.7% since the fall budget and 11% from the same period last year.
Re-loan business
The availability of mortgage products for home promoters has climbed 4.8% since the fall budget, and those who want to cash out see a 4.7% increase in the number of products available.
Alexander Hall data commented: “Although Bank of England has started to lower interest rates, we have not seen any significant improvements in mortgage rates, in fact, Our previous research shows that the average mortgage loan shows that the current interest rate is about 8% higher than a year ago.
“But the good news for homebuyers is that mortgage products have improved availability and now there are bigger options that can be used even in just a few months since the fall budget.”
“Specifically, not only is there an increase in the number of available products for first-time buyers, but the number of lenders now offering higher income multiples has also increased to help alleviate affordability challenges on the ladder,” she added.
