Mortgage market sees highest product availability in over 15 years

Alongside falling fixed rates and a longer average shelf-life, increased product availability demonstrates a buoyant period in the mortgage market.

The end of the year sees a particularly buoyant period in the mortgage market, with product choice rising month-on-month for the fourth consecutive time. Standing at 5,678 at the start of this month, the last time there were more deals available was March 2008, Moneyfacts UK Mortgage Trends Treasury Report data finds.

Furthermore, the report found average rates for both a two-year and five-year fixed deal fell for a third consecutive month at the start of November. The average two-year fixed rate stood at 6.29%, down from 6.47% in October. Meanwhile, the average five-year fixed rate fell to 5.86% from 5.97% during the same period.

Caption: The number of mortgage products on the market is at its highest level since March 2008.

Alongside the average shelf-life of mortgage deals rising to 20 days in November, Rachel Springall, Finance Expert at Moneyfactscompare.co.uk, said these are “promising signs” the market is settling.

Caption: Average shelf-life of a mortgage product rose to 20 days in November 2023

Mortgage borrowers with a smaller deposit or less equity in their property may be especially pleased to learn product choice in this corner of the market is thriving.

The number of deals available that can finance a loan-to-value (LTV) of 95% rose to 254 – the highest availability since before the fiscal announcement in September 2022.

As for the number of options that can finance 90% LTV, this rose month-on-month to stand at 709 – its highest count since February 2022.

While shelf-life continues to improve month-on-month, edging away from the record low of 12 days in July, there’s no telling how long this may last.

Growing expectations for fixed rates to fall further could impact the shelf-life of competitively priced deals, explained Springall.

“Year-on-year, the market has seen substantial recovery when it comes to choice, but there is still more room for improvement for those borrowers waiting for fixed rates to fall further before they secure a new deal,” she added.

Nevertheless, Katie Rampling, Spokesperson at Mortgage Advice Bureau, revealed that compared to six months ago, they are seeing “more confidence in the market because rates are getting cheaper”.

“Cheaper rates from lenders means better affordability for our clients in regard to how much they can borrow and how much their repayments are on a monthly basis,” Rampling went on to add.

Borrowers weighing up their options may want to consider seeking independent advice to help them navigate the mortgage market.

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