According to Moneyfacts, this is an increase from 3,643 in January this year but below the figure of 5,356 in February last year. It is up on 3,215 products in February 2021.
The firm added that product choice had nearly doubled since the end of October, when the product count was 2,258.
This was due to the mini Budget leading to multiple product withdrawals from lenders as financial uncertainty impacted swap rates.
Moneyfacts said that the return in product options was a “positive sign of stability” following the mini Budget.
The company said that deals at the 60 per cent loan to value (LTV) has increase by 122 deals between January and February to 606, which is the highest level in three years.
Deals at 95 per cent LTV increased to 17 products in February and at 90 per cent LTV products have risen by 104 to 539 deals.
Fixed rate pricing falls and shelf life grows
Average two and five-year fixed rates has decreased month-on-month for the third consecutive month to 5.44 per cent and 5.2 per cent respectively.
The company said that the margin between average two and five-year fixed rates is 0.24 per cent, which is the largest in almost 15 years. In March 2008, the margin was 0.31 per cent.
Average Standard Variable Rates (SVR) have also continued to grow, standing at 6.84 per cent in February. This is the highest since October 2008 at 7.01 per cent.
Moneyfacts said that the average shelf life of a mortgage product increased to 38 days, which is the joint highest since march last year.
It is also an improvement from 15 day low seen a month ago.
The firm said that this could be due to “further stability among lenders”, adding that repricing has been “rife over recent months”.
SVRs at highest rates since 2008
Rachel Springall, finance expert at Moneyfacts, said that the mortgage market had shown “notable stability with product choice” which has surpassed 4,000, and noted that shelf life had improved and fixed rate pricing had fallen.
She added that “rate competition” was more focused on five-year fixed rate deals and the margin between two and five-year fixed rates is the largest margin in almost 15 years.
Springall said: “Borrowers with a limited deposit may be pleased to see choice expand month on month and that both the two and five-year average fixed rates at 95 per cent LTV sit below six per cent for the first time since October 2022.
“On the other end of the spectrum, both choice and rates at 60 per cent LTV improved, following a rise of 122 to 606, availability within this tier is at its highest level in three years (February 2020 – 611).”
She added that the movements show that borrowers on both end of the LTV tiers “could now find lower rates and more choice, but it would be understandable if they were to wait a bit longer for rates to come down”.
Springall continued: “Those borrowers sitting on their revert rate may wish to note the average SVR stands at its highest point since October 2008, so switching to a fixed deal may help them reduce their monthly mortgage repayments and give them peace of mind.
“If borrowers want a bit more flexibility to come out of their deal quickly, a tracker mortgage could be a worthy choice, but they must keep in mind that their rate could rise as well as fall in the months to come. It is imperative borrowers take time to seek advice to ensure they are considering all the options available, particularly as fixed interest rates are expected to fall further in the coming months.”
