Brokers have more choice than ever before with the number of mortgage products hitting an all-time high in March.
However, new mortgage application activity dropped 9.1% on February, as the 1 April deadline for the new stamp duty surcharge loomed closer.
New mortgage application activity was nevertheless up 4.9% on previous year, despite pre-referendum uncertainties and a plateauing of the UK economy.
Mortgages are getting cheaper with three and five-year fixed rates falling to record low levels, according to the latest national mortgage index from the Mortgage Advice Bureau (MAB).
There are now 18,653 mortgage products on the market, up from 17,653 in February, a rise of 5.66%, giving borrowers a wealth of low-cost deals to choose from.
MAB’s analysis of Moneyfacts Average Mortgage Rate data showed that average three and five-year fixed rate mortgages fell to 2.91% and 3.25% in March, 1 bps lower.
Brian Murphy, head of lending at MAB, said the sheer number of products at competitive rates suggest that lenders are bullish in trying to acquire new customers.
“It really begs the question, how far do they want to go to attract new business?
“We’re seeing a sustained period of lenders cutting rates, which maybe demonstrates a continued push for market share, rather than striving for profitability.”