Mortgage holders in the UK have been given a boost with the number of products on the market now at the highest level since 2008. Mortgage borrowers had the biggest number of products to choose from in over 16 years in early April, according to a financial information website.
Across all deposit sizes, Moneyfacts counted 6,307 mortgage options at the start of April including fixed and variable deals – the highest number since 6,760 were recorded in February 2008. Rachel Springall, a finance expert at Moneyfacts, said: “These are encouraging signs for borrowers concerned about rising interest rates and the short window of opportunity to secure a new deal.
“It is worth noting that both the average two and five-year fixed rates are lower than they were back at the start of 2024. Borrowers will find rates are significantly lower compared to six months ago, when the average two and five-year fixed rates were 0.67 (percentage points) and 0.58 (percentage points) higher respectively.”
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Ms Springall continued: “Mortgage product availability continues to thrive, with the overall choice of residential products reaching its highest point in over 16 years. Deeper analysis shows that the number of deals available at higher loan-to-value ratios rose. Indeed, at 90% loan-to-value, the number of deals increased for a consecutive month, as did deals at 95% loan-to-value.
“There are now 1,109 deals at these ratios combined, positive news for borrowers with a limited deposit or equity. The growth in choice is good news for first-time buyers, who may be struggling to find an affordable property.” She said: “In April 2022, the average two-year fixed mortgage rate was 2.86%, and in April 2019 the average five-year fixed mortgage rate was 2.88%.
“Seeking advice is a wise choice to help navigate all the deals available and to work out which one would be the most cost-effective option.”
