The number of mortgage products available to intermediaries fell by 17% in May, according to Trigold's Product Index.
The Product Index shows the total number of products available to intermediaries fell by 2,926 to just 13,992. In March, the number of intermediary products stood at 23,037.
David Aylmer, marketing and business development director at Trigold, comments: “This has a severe impact on the role of product recommendation by mortgage intermediaries although it could be argued that with diminishing opportunities the role of independent advice has never been more crucial to UK borrowers.”
The total number of mortgage sourcing recorded by the Trigold system fell 27% to 1,221,741, though Trigold points out that sourcing volumes reached a year-long high in April.
Trigold’s research also found the average mortgage payment has grown by almost £100 over the past twelve months, putting a strain on borrowers.
As the availability of mortgages dwindles, average mortgage payments for borrowers have increased by 1.9% to £945.24.
Monthly mortgage costs for borrowers have increased by £94.12 since May 2007, according to Trigold.
Trigold says higher interest rate costs are largely to blame, with average rates for remortgaging rising from 5.9% in March to 6.27% in May. House purchase loans saw the biggest rate hikes, up from 5.9% two months ago to 6.4% today.
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