Mark Lofthouse, CEO of Mortgage Brain, explains how the firm’s product data analysis helps lenders and advisers understand market trends For several years, Mortgage Brain has been producing a detailed analysis of mortgage products covering many aspects of the UK mortgage market.
The analysis can be broken down into three distinct areas: identifying market trends; product competitiveness; and the number and breakdown of products.
Over a long time period, they can be used to help identify trends, enabling lenders to adjust their product’s rates and features to suit the market at that time.
The cost of a two-year fixed BTL mortgage with a 60% LTV, for example, has come down by 24% since 2013, while a 60% LTV two-year tracker BTL mortgage now costs 21% less than it did five years ago (see graph 3).
Personalised data for lenders Mortgage Brain also offers lenders an insight into how their products compete through tailored product analysis to help gauge their market position and competitiveness.
An additional 4,214 products have been introduced into the UK mortgage market over the past two years alone.
An additional 3,263 products over the past two years represents a 66% uplift in the number of mortgages with a 60% LTV or more.
Data analysis can identify long and short-term trends in types of product, length of term and LTV ratios enabling lenders to adjust product rates and features as well as find and fill any gaps in the market.
Five years ago there were 3,200 products available to mortgage advisers, now there are 10,000.
An additional 4,214 products have been introduced into the residential mortgage market over the past two years alone and buy-to-let product numbers have increased to 2,971 from 1,516.