According to data from the Mortgage Advice Bureau, the total number of home loans in April increased by 19% from 11,416 to 13,539.The rise in competition has been attributed to the introduction of new stimulus schemes such as Help to Buy as well as a re-boost in consumer confidence in the housing market.

Banks and building societies prevented consumers from high loan-to-value mortgages and offered small range deals in the aftermath of the financial crisis. However new interest rates and competition within the market have generated a mortgage price war across the country.

Head of lending at Mortgage Advice Bureau, Brian Murphy said: “new-to-market lenders such as Bank of Ireland for Intermediaries, Pepper Homeloans and Fleet Mortgages, have launched in the past year, and more are bound to come as competition in the mortgage sector intensifies,” he said. “Meanwhile, existing lenders have been strengthening their mortgage proposition in response to the rise of challenger banks.”

David Hollingworth from mortgage brokers, London & Country said: “there is not much innovation out there – lenders are tending to offer straightforward, fixed-rate deals. But that’s not a criticism – people are looking for good-value mortgages of that type, and that’s what’s out there.”

He added: “the fact that Yorkshire Building Society’s two-year deal is at 1.07% compared with Co-op Bank’s 1.09% deal shows just how intense competition is and how important it is to be at the top of the table,”

“Industry forecasts for future growth are moderate but positive. Consumer demand is certainly riding high, but our major concern is that housing supply is running dangerously low. The UK is short of enough suitable properties to support potential buyers’ homeowning aspirations, and a housing strategy that will last beyond the current government is desperately needed.”

SU/MH