Mortgage Product Choices Reach Highest Level in Over 16 Years

The number of mortgage products available to buyers in the UK property market has now increased to reach a variety of 6,307 options, the highest level the market has seen since February 2008 – over 16 years ago.

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There are now over 6,300 mortgage products available to buyers in the UK property market at the time of writing according to financial information company Moneyfacts with the number of products available reaching the highest level that the UK market has seen in over 16 years.

Mortgage products reach their highest level in 16 years

Mortgage product availability has hit a new peak this week with the overall number of choices in the residential mortgage market reaching its highest level in over 16 years according to the latest research from financial information company Moneyfacts with the availability of deals at the 90% LTV tier increasing for a second consecutive month to reach a total of 774 products.

The number of deals at the 95% LTV tier also rose for a fourth consecutive month standing at its highest level in almost two years and reaching a total of 347 products currently in the market.

Mortgage rates are also currently lower than they were in January this year according to Moneyfacts, despite rising modestly between March and April.

“Fixed mortgage rates have continued on an upward trajectory, but the rises to the overall average two- and five-year fixed mortgage rates were much more modest. The volatility surrounding the shelf-life of mortgage products also stabilised.”
Rachel Springall, Finance Expert at Moneyfacts.
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UK’s biggest mortgage lender cuts mortgage rates by 0.11 percentage points

The average shelf-life of a mortgage product in the UK has now stabilised to reach 22 days on the market up from the average 15 days recorded at the beginning of March this year and 10 days longer than the shortest shelf-life recorded in July 2023 (12 days).

This comes as the UK’s biggest mortgage lender Halifax opts to cut selected two- and five-year fixed rates for residential purchases, remortgages, and product transfers by up to 0.11 percentage points.

Following other major lender cuts from the likes of Santander and HSBC, Halifax has announced they will be reducing rates for both new and existing customers after the positive news on inflation and interest rates last month.

"It is worth noting that both the average two- and five-year fixed rates are lower than they were back at the start of 2024. Borrowers will find rates are significantly lower compared to six months ago when the average two- and five-year fixed rates were 0.67% and 0.58% higher respectively.”
Rachel Springall, Finance Expert at Moneyfacts.
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Net approvals for both mortgages and remortgages across the UK increase

According to the Bank of England’s latest Money and Credit report, the housing and mortgage market is showing green shoots as net mortgage approvals in the UK for house purchases are now up by more than +4,000 to a total of 60,400 in February – increasing from 56,100 in January.

Net approvals for remortgages are also on the increase, rising from 30,900 to 37,700 throughout the same period.

“These are positive, encouraging figures from the Bank of England. More people are looking to borrow, and it’s a good sign when house purchase numbers are moving in the right direction. Buyers are comfortable that the interest rate environment is settled. With remortgaging to another lender increasing, it is a further sign that the interest rate environment is moving in the right direction as more borrowers are looking at their options, rather than taking the easier route of a product transfer (with the same lender).”
Gareth Lewis, Managing Director at MT Finance.
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