At the beginning of November, there were 5,678 mortgage products on offer for borrowers — the highest amount since March 2008, according to Moneyfacts’ data.
And for buyers with a lower equity amount, there are the most deals available since September 2022. The number of deals that can finance a loan-to-value (LTV) of 95 per cent rose to 254 and surged to 709 for mortgages up to 95 per cent LTV.
Further, the choices on offer for first-time buyers, households’ remortgaging and home movers have shot up for the fourth consecutive month, leading to Moneyfacts lauding a ‘thriving mortgage market’.
The treasury report by the financial research company analysed mortgage industry trends throughout 2023.
It noted that added competition in the market has caused a dip in prices for two and five-year fixed rates compared to last year, with a two-year fix standing at 6.29 per cent — down from 6.47 per cent in October 2022. The five-year alternatives also dropped, falling from 5.97 per cent to 5.86 per cent in the same period.
Market has seen ‘substantial recovery’
After a fourteen-month spell where the Bank of England hiked the base rate up to 5.25 per cent to combat inflation, experts are confident the market is steadying and buyers will get value for money on their mortgage deals.
Katie Rampling, spokesperson at Mortgage Advice Bureau, said that compared to six months ago, “they are seeing more confidence in the market because rates are getting cheaper.
“Year-on-year, the market has seen substantial recovery when it comes to choice, but there is still more room for improvement for those borrowers waiting for fixed rates to fall further before they secure a new deal.”
Rachel Springall, finance expert at Moneyfactscompare.co.uk, said: “Cheaper rates from lenders means better affordability for our clients in regard to how much they can borrow and how much their repayments are on a monthly basis.”