While the total number of mortgage products across intermediary and direct channels rose 16% from an average in July of 5,208 to an average of 6,050 in August, there was only a 7% rise in direct products – 1,401 to 1,505. This is in comparison with a 19% rise in intermediary products which rose to an August average of 4,545 from a July average of 3,807.
David Aylmer, business development and marketing director of TrigoldCrystal, says:
“It is great to see more choice available in the intermediary product sector of the market. As an indicator of confidence in the sector this is very positive news.
“With the latest Nationwide figures showing a 2 month decrease in house prices, of course things remain turbulent, but as we have always said, increasing house prices are not necessarily good for the market – we are far more concerned with turnover in the market as a whole than overall property value – it is the number of new mortgages which is of slightly more concern to advisors than their outright value.
“But the fact that 7 times as many more intermediary products than direct have been introduced into the market over the last month does lend itself to the view that things are changing for the better. With greater competition should come reduced pricing and hopefully this will bring a degree of parity between intermediary and direct product pricing.
"Although, we know that the majority of our clients now offer a fee-paying option to include advice on direct products, the message that good advice is essential when selecting a mortgage is far better underlined when advisors are not squeezed out of the best deal by banks selling products on a non-advised basis.
"The sooner that equitable pricing between direct and intermediary products returns to the market, the happier we will be. So we look forward to seeing even more intermediary products introduced to the market in the coming months.”
