Figures show that the number of five-year products in the current market is 1,542 compared with 796 five years ago.
Perhaps more strikingly, the data shows the rising popularity of five-year fixes with the current figure just five short of matching the number of historically more popular two-year fixed rate products, which currently stands at 1,547.
Five-year fixed deals at maximum 75 per cent loan-to-value (LTV) have seen the largest increase of 165 products, from 138 in 2014 to 303 this month.
Meanwhile those borrowers who can raise a deposit of 10 per cent have 135 additional products to choose from and are now able to select a deal from a total of 267.
Darren Cook, mortgage analytics manager at Moneyfacts, said: “Two-year fixed rate mortgage deals have historically dominated borrower market choice, however with the number of five-year fixes increasing significantly over the past five years, it is clear that borrowers now have an even choice of products available in both the two- and five-year fixed rate mortgage markets.”
He added that with fixed interest rates currently near historic lows, there is competition among mortgage providers to not only to grow their mortgage books, but to compete to make sure that their mortgage rates appear competitive to retain their existing borrowers, making sure that they do not drift away to another mortgage provider.
“Historically, borrowers seemed to have preferred the short-term commitment of a two-year fixed rate deal,” Cook continued.
“But now that product availability has significantly increased in the longer-term five-year mortgage market, borrowers may be looking beyond interest rates and more towards the stability of setting monthly mortgage repayments and hedging themselves against uncertain economic conditions in the longer term,” he added.
