The March Trigold Product Index constructed from data from the mortgage sourcing system in February has revealed that the average number of live products available to mortgage intermediaries fell from 3,707 in January to 2,983 – a loss of 724 individual products and a drop of 19.53 per cent.
The sourcing system revealed a “black cloud” as broker activity was found to be half what it was last year. However, the statistics reveal that the average mortgage payment is £120 lower than in February 2008 a saving for consumers of almost £1,500 per year.
Trigold marketing and business development director David Aylmer says: “Although product numbers continue to fall and broker activity has witnessed a remarkable 50 per cent drop since last year the cost of mortgages is falling which is good news for consumers.
“Furthermore, although the latest interest rate cut is unlikely to translate directly into product pricing it does still mean that there are some affordable deals available for those with a significant deposit. The availability of mortgage funds is still a widespread concern for the industry but product affordability is a message that brokers should be talking about to their existing and prospective clients.”
New data from the Council of Mortgage Lenders illustrates this downturn – mortgage lending activity in January was halved, year-on-year, with only 23,400 loans for house purchase completed, down from 32,400 in December and 48,600 in January 2008.