Number Of Homeowner Loan Products Continues To Increase
Over the course of the past few months we have seen a continuous increase in the total number of available home owner loan and mortgage products, as banks and building societies slowly restore their balance sheets and begin to regain access to wholesale funding, thereby allowing them to be able to offer new loans to individuals once again.
The latest figures from Mortgage Brain, the home owner loan sourcing system for financial advisers and loan brokers, show that the number of available loan products has increased significantly in the last month, making five continuous months of growth in the market place.
According to Mortgage Brain, the total number of available home owner loan products increased by 4 per cent in the last month alone, to reach 3,337 different loans by 1st December this year, up from 3,222 at the same period in the previous month. This is now the highest number of available home owner loan products since the start of this year, although it is still only a fraction of the total number of loans which were available prior to the credit crunch and financial advisers and loan brokers all realise that there is still a long way to go.
Overall, there has been a growth of 16 per cent in new loan products over the course of the past six months. In the past three months, tracker loans have seen the most growth, with an increase of 15 per cent in the last month alone. Fixed rate loan products, on the other hand, have remained fairly static, as borrowers start to move away from this type of loan.
Mark Lofthouse of Mortgage Brain said “Total mortgage schemes are at their highest for 11 months, which considering the turbulent year we’ve had is fantastic news and a great way to draw in the end of 2009. Everyone in the mortgage industry is well aware that there is still along way to go on the road to recovery, but it’s nice to finish the year on a high and it will be even better if 2010 starts in the same way.”
