Product Choice still on the increase!

Product choice has been on the increase over the past few months. Independent research company, Defaqto, suggest that 8,968 mortgage products were brought to market, or updated between April and June this year.

186 brand new fixed rate mortgages were introduced and there were 4,815 changes to existing fixed rate deals. 80 Tracker rate mortgages were launched and 99 buy to let products were brought to market.

Defaqto also go on to say that, given the speed of change in the mortgage market, lenders are faced with three key challenges:
• Keeping on top of what competitors are doing, and being aware of new launches or product changes as soon as they happen
• Being able to respond quickly to take advantage of opportunities or to counter threats
• Identifying how to make their mortgage product stand out from the competition and how they can cut through the noise of competing products to reach target consumers

Although obvious, I think this hits the nail on the head. In the current climate, lenders are changing rates daily to keep abreast of each other. Some are launching marketing leading products, available for just a week, in order to bolster business volumes. This is good news for you, the consumer! Do keep any eye on AToM’s shop front window in the Carfax (near the bandstand), as we are now highlighting some of the most competitive rates available. Just be wary that rates can be withdrawn at any time!

Moneysupermarket.com have also highlighted that there are good opportunities around for those with a 10% deposit. 312 products are now on offer and this is up 17% compared to June.

Someone asked me this week if it is true that FSA spent more than £500k on internal caterers for staff and visitors last year. They also asked if it was true that this represented an increase of more than 30% on 2009 and, finally, they asked if it was true that the top job in the FSA now pays more than £800k per annum (against the £308k paid to the Governor of The Bank of England). I immediately responded that I could not possibly comment!