Moneyfacts registered the highest product count since February last year, when the number of deals was pegged at 5,356.
Within loan to value (LTV) tiers, at 60 per cent LTV product counts rose from 529 last year to 702 this year. Moneyfacts said that this was the highest level on record.
The number of products at 85 per cent LTV rose to 806 deals, also the highest level on Moneyfacts records.
At 90 per cent LTV the increase year-on-year was from 665 to 684, and at 95 per cent LTV products numbers fell from 367 to 204.
The average two and five-year fixed rates rose between the beginning of March and April to 5.35 per cent and 5.05 per cent respectively.
The margin between the average two-year fixed rate is 0.3 per cent higher than the average five-year equivalent.
The average two-year tracker variable mortgage rate increased 0.18 per cent month-on-month and breached five per cent for the first time in 14 years at 5.02 per cent.
The average standard variable rate has gone up to 7.3 per cent, the highest rate since February 2008 when it stood at 7.31 per cent.
Product choice ‘positive across the market’
Rachel Springall, finance expert at Moneyfacts, said that the number of mortgage products had risen to its “highest point in over a year, boosting choice for consumers comparing deals and sets a positive movement across the market”.
“The encouraging rise in products comes around six months on from the unprecedented uncertainty surrounding interest rates following the fiscal announcement.
“The month-on-month rise in products was a significant 774 options, and several LTV brackets experienced a rise, including deals at 95 per cent LTV which has breached 200 deals for the first time since September 2022 at 274,” she added.
Springall continued that interest rate competition among lenders was “mixed month-on-month”, but it is “widely expected” that fixed mortgage rates will fall over the next few months. This would be determined by “fluctuating swap rates and lenders’ business appetite”.
“Those borrowers with a large deposit or equity may be pleased to see the average rates at 60 per cent LTV for a two-year or five-year fixed mortgage stand below five per cent. However, those who are coming off a two-year fixed mortgage and wish to refinance on the same term at 60 per cent LTV may wish to note the average rate on a two-year fixed mortgage in April 2021 was 1.63 per cent, compared to 4.95 per cent for April 2023,” she noted.
Springall continued that variable interest rates had been “steadily…rising”, partially due to the base rate increasing to 4.25 per cent. This led the average SVR to hit its highest rate since 2008 and average two-year tracker breaching five per cent for the first time in 14 years.
“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,” she said.
