Wed 13 Sep 2023
It is a boost for buyers who have been hampered by high mortgage rates in recent months.
Moneyfacts data shows there are 5,338 mortgage products on the market as of early September, the highest count since February 2022 when there were 5,356.
It is also more than double the availability seen in October 2022.
Within the individual loan-to-value (LTV) tiers, following month-on-month rises, options within the 85% LTV tier are at their highest levels on Moneyfacts’ records.
This may well suggest more stability in choice across the market, Moneyfacts said.
Average rates are also falling despite expectations of a further interest rate rise from the Bank of England.
The average pricing on a two-year fixed rate mortgage dropped from 6.85% to 6.7% between August and September and fell from 6.37% to 6.19% on a five-year deal. The figures are still higher than the typical 2% average this time in 2021 and 4% in 2022.
Rachel Springall, finance expert at Moneyfacts, said: “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 LTV spectrum was for borrowers who have a 15% deposit or level of equity, as choice in this sector rose by 74 deals, to stand at an all-time high on Moneyfacts’ records, standing at 868 products.
“As average fixed rates remain at levels not seen since the years following the 2007 financial crisis, borrowers may wish to consider other options, such as tracker mortgages, so seeking advice to navigate deals is essential.
“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. Borrowers concerned about the affordability of their mortgage will be keen to see stability in product choice and for fixed rates to fall further before they refinance.
“There are some attractive deals out there with incentive packages to choose from, which may be a more cost-effective choice than a low-rate fixed deal.”