Lenders are introducing new products at a rate of more than three a day

The number of mortgage products available has climbed 9.3% in the past twelve months. That’s a rate of more than three a day for a year.

Borrowers had almost 14,437 products to choose from in February, climbing by 1,233 compared to the same period a year earlier, according to technology company Mortgage Brain. The increase has been driven by unprecedented competition in the lending market, with high street lenders competing for market share, driving prices down.

“We’re seeing increasing appetite to do deals from the banks, with new targets set at the beginning of the year and a rate war underway among the high street lenders,” said Simon Gammon, our Managing Partner. “There have been few better times to reassess your borrowing, but with so much choice, we recommend customers speak with Knight Frank Finance in order to secure the best deals available.”

The number of remortgage deals climbed the most during the year, with product numbers increasing 7.4% to 9,718. This tallies with Knight Frank Finance analysis of bank lending data, which shows a significant increase in loans for remortgage approved by the high street lenders.

High street banks approved £6 billion in loans for remortgage in the month of January alone, up from £4.4 billion during January 2019.

The choice for investors also continues to climb. The number of products for landlords to choose from grew by 4.5% to 4,263. Product numbers rose across all loan-to-value bands, with deals available at an LTV of 70% or more seeing the sharpest increase.

The uplift comes amid improving sentiment following December’s decisive election result.

If you would like to review your borrowing options, or have any questions about the mortgage market, please get in touch.