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Over 1,500 mortgages were introduced into the UK mortgage market during August – the biggest increase in over 20 months. The total number of mortgage schemes listed on Mortgage Brain sourcing system increased by 25% in the past month, up from 6,081 on August 2 to 7,618 as at August 30.  The figures are a far cry from this time last year when there was a mere 0.2% increase in product availability and the total number of products stood at 2,505. Since then, more than 5,000 products have been introduced (a 204% increase).Fixed rate products claim market share of new products introduced last month. A 31% increase (1,179 new products) during August brings the total number of fixed rate products available to UK intermediaries to 5,020 – up from 3,841 available at the start of the month. Variable rate products now represent 949 of all available products – their highest in over two years – after an 85% increase (437 new products) during August.Trackers continue their downward trend, however, dropping for the third month in a row (5%) but still hold their ground as the second most popular product type, representing 1,649 of all products. There were 350 new core lender products introduced in August, representing a 17% increase in availability. There was a 29.9% rise in broker exclusives (1,187 new products) but a relatively modest 9.7% increase in lender direct products, bringing the total to 1,280.Mark Lofthouse, CEO of Mortgage Brain, said: “Compared to August 2009, the UK mortgage market has moved ahead leaps and bounds in terms of product availability, which is great news for all.“This time last year our analysis showed that five new products were introduced during August. This year the number peaks at just over 1,500. The overall 12-month analysis is equally as impressive with 5,113 more products now available in the UK intermediary market than this time last year.”

From today Northern Rock is reducing its fees by 60% to £99 on house purchases.
The range, which includes both fixed rate and tracker mortgages, as well as buy-to-let, is designed to appeal particularly to first-time buyers and those with lower deposits.

Anth Mooney, marketing director at Northern Rock says: “This reduction to our mortgage application fee is great news for customers who are looking to keep their purchase costs low.
There are lots of elements involved in buying a new home and this is one way Northern Rock is helping to keep things as straightforward and affordable as possible for our customers.”

House prices have dropped in August by up to 1.7%, the Rightmove House Price Index reveals.
New properties being put on the market are down by £4,091 as over supply coincides with holidays.
The average house price in England and Wales slipped to £232,241 as Rightmove registered its biggest drop so far this  year, following on from a 0.6% fall in July.

Demand remains high but affordability is still a key issue with six out of 10 people renting property admitting they would rather buy but can not afford to.
Miles Shipside, director of Rightmove, says: “No one really wants to come to market in August unless they have to. It shows these new sellers have a compelling need to sell, as they have lopped over £4,000 off the average asking price.
“Those who marketed earlier in the year but have yet to find a buyer may have to do a bit of pruning of their own to beat this new competition. Holidaying buyers can relax on the beach while back at home sellers are reducing the cost of their future property by the price of the family holiday.”

The July RICS Housing Market Survey shows more surveyors are now seeing prices starting to fall, with the headline price balance slipping from +8 to -8, the first drop in the last year.

The lower prices are being driven by more houses on the market and less demand of new buyer enquiries. Indeed, the new instructions balance increased from +28 to +33, the highest reading since May 2007.

Surveyors suggests the rise in new instructions is primarily related to homeowners testing the market following the abolishment of HIPs.

New enquiries fell for the second consecutive month from -6 to –10. Transaction levels remained more or less unchanged with the agreed sales balance edging down from +3 to +1.

The average number of properties on surveyor’s books rose by 4.1%. At the same time, the average number of sales per surveyor remained essentially flat at 16.6 (down 0.1% on the month). As a result, the sales to stock ratio – an indicator of market slack- fell to 24%, the lowest level since June 2009.

The regional picture shows more surveyors are still reporting price increases than decreases in London and the North West. The picture is stable in Scotland and the South West. Elsewhere, including Northern Ireland, more surveyors are seeing price falls.

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