Borrowers’ delight as fresh deals hit the market

There are now over 5,000 mortgages on the market.

Borrowers are benefiting from an increase in mortgage options, according to the latest Moneyfacts UK Mortgage Trends Treasury Report.

The encouraging rise in products comes around six months on from the unprecedented uncertainty surrounding interest rates following the fiscal announcement. This forced many lenders to withdraw their deals from the market as they considered how to reprice their ranges.

Today there are over 5,000 mortgages on the market, the highest available since February 2022. Meanwhile, the month-on-month rise in products was a significant 774 options.

Several loan-to-value brackets experienced a rise, including deals at 95% loan-to-value (LTV) which breached 200 deals for the first time since September 2022.

Interest rate competition among lenders was mixed month-on-month, however it is widely expected that fixed mortgage rates will reduce over the next few months.

This will be determined by fluctuating swap rates and lenders appetite for business.

Those borrowers with a large deposit or equity may be pleased to see the average rates at 60% LTV for a two-year or five-year fixed mortgage stand below 5%.

Away from the fixed mortgage arena, variable interest rates have steadily been rising. The Bank of England base rate rose again last month to now stand at 4.25%, and our average Standard Variable Rate (SVR) has now hit 7.30%, its highest rate since February 2008.

Borrowers comparing both rates and the overall mortgage packages would be wise to seek independent financial advice to assess the true cost of any deal, and to ensure it’s the right time for them to refinance.