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Mortgage product choice climbs as rate competition deepens – Moneyfacts

  • 12/07/2021
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Mortgage product choice climbs as rate competition deepens – Moneyfacts
Product choice continued to climb in June, with total mortgages coming to 4,512, and rates on two and five-year fixed rates still falling.


According to a Moneyfacts report, deals on offer increased by 269 from June to July. This was the ninth month of consecutive product choice increases, the highest level for 16 months.

The report also noted that it was the first time since 2018 that product availability has increased across all loan to values (LTV) bands, with the largest increases recorded in the 95 per cent LTV bracket.

The number of products in the 95 per cent LTV range grew by 61 products month-on-month, and is 239 more than the same period last year. Products in the 90 per cent LTV band increased by 46 compared to the previous month, whereas products in the 85 per cent LTV jumped by 41.

Rates for two-year and five-year fixes fell by 0.04 per cent to 2.55 per cent and 2.78 per cent respectively.

According to Moneyfacts, this is the lowest average two-year fixed rate since February last year and since April for the average five-year fixed rate.

Moneyfacts finance expert Eleanor Williams said that first-time buyers and those with a lower deposit would benefit most from the rate cuts, and that there was a growing number of sub-one per cent deals in the market. She noted that despite property prices falling slightly, possibly due to the stamp duty holiday, but overall, property prices were up 8.8 per cent on a yearly basis.

She explained: “Demand for the very limited supply of property could remain high, as the appetite to either get onto the property ladder or for larger properties with home offices and outdoor space continues, and these borrowers could be enticed by the possible savings lower mortgage rates may bring them.”

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