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Mortgage product choice hits 19-month high as market stabilises – Moneyfacts

  • 12/09/2023
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Mortgage product choice hits 19-month high as market stabilises – Moneyfacts
Mortgage product choice has risen to its highest level since February 2022 with one loan-to-value tier at the highest product level on record, according to a financial data service.

There are now 5,338 products in the market, according to Moneyfacts’ mortgage trends report. This is the the highest count since February 2022 (5,356) and more than double the availability seen in October 2022.

Following months of rises within the individual loan-to-value (LTV) tiers, options within the 85 per cent loan to LTV tier are at their highest levels on Moneyfacts’ records. The report suggested this may well mean “there’s more stability in choice across the market.”

Fixed and variable rate product count has risen year-on-year at both 60 per cent LTV, from 471 in September 2022 to 532 this year, and at 90 per cent LTV from 513 to 632. However, count has fallen marginally at the 95 per cent level, from 274 products last year to 243 in September 2023.

The shelf life of mortgages also rose, with buyers now having an average of 15 days to secure a deal. The lowest on Moneyfacts’ records was 12 days in July 2023.


Rates falling

In addition, both the average two and five-year fixed rates fell between the start of August and the start of September, to 6.70 per cent and 6.19 per cent respectively. The average two-year fixed rate stands at 0.51 per cent higher than the average five-year equivalent.

Moneyfacts’ finance expert Rachel Springall said: “Mortgage product choice has grown to its highest level since February 2022 and average rates are gradually falling. This positive momentum has resulted in the average shelf life of a mortgage product rising to 15 days, up from a record low of 12 days in July.

“It was a busy summer for lenders, as they moved to cut fixed rates and launch new deals to entice borrowers. A notable area of growth in the LTV spectrum was for borrowers who have a 15 per cent deposit or level of equity (85 per cent LTV), as choice in this sector rose by 74 deals, to stand at an all-time high on Moneyfacts’ records, standing at 868 products.”

She added: “It will be interesting to see how the mortgage market improves in the weeks to come, particularly if swap rates fall, as lenders may then cut their fixed rate deals as a result. As we have seen before, a volatile interest rate market can have a significant impact on lenders’ pricing strategies.”

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