The total number of residential mortgage products is on the rise – above 5,000 for the first time since May 2022. This is according to the latest UK Mortgage Trends Treasury Report from Moneyfacts.
Product choice is up month-on-month to 5,146 options, breaching 5,000 for the first time since May 2022 (5,087) and the highest count since February 2022 (5,356).
Within the individual loan-to-value (LTV) tiers, following a rise of 45 to 702, availability within the 60% LTV tier is at its highest level on Moneyfacts records.
The 85% LTV bracket saw one of the largest rises over the month and at 806 available products, the number in this tier is also the highest level recorded by Moneyfacts.
Both the average two-and five-year fixed rates rose between the start of March and the start of April, to 5.35% and 5.05% respectively. The average two-year fixed rate stands at 0.30% higher than the average five-year equivalent.
The average two-year tracker variable mortgage rate rose by 0.18% month-on-month and breached 5% for the first time in 14 years (December 2008 – 5.41%) to sit at 5.02%.
The average Standard Variable Rate (SVR) continued to climb. At 7.30%, this rate is now the highest rate since February 2008 (7.31%).
Moneyfacts finance expert Rachel Springall comments on the report: “The encouraging rise in products comes around six months on from the unprecedented uncertainty surrounding interest rates following the fiscal announcement”.
She adds: “Interest rate competition among lenders was mixed month-on-month, however it is widely expected that fixed mortgage rates will reduce over the next few months, but this will be determined by fluctuating swap rates and lenders appetite for business.
According to Springall borrowers with a large deposit or equity may be pleased to see the average rates at 60% loan-to-value for a two-year or five-year fixed mortgage stand below 5%.
However, she suggests those who are coming off a two-year fixed mortgage and wish to refinance on the same term (60% LTV) may wish to note the average rate on a two-year fixed mortgage in April 2021 was 1.63%, compared to 4.95% for April 2023.
