Those looking for a new mortgage now have the most number of deals to choose from since the pandemic began. Recent data to be released in the Moneyfacts UK Mortgage Trends Treasury Report, found that there are currently 3,215 mortgage deals available. This is the highest number since March when there were 5,222 deals in the market. As from October 2020 it is the largest four-monthly rise, at 42% since 2007.
Availability of 90% Loan-To-Value mortgages rise again
The biggest rise in deals over the last few months is on mortgages that need a 10% deposit/equity – 90% Loan-To-Value (LTV), going from 160 to 248. This is fantastic news for first-time buyers, as these deals are predominately aimed at this market. However, the 95 per cent LTV category, saw a decrease from 8 to 5 across the same time frame.
On the rise in 90% LTV products, Moneyfacts finance expert Eleanor Williams says: “Willingness to extend lending in this risk bracket could be an indication that lenders have confidence in the sector, despite ongoing, wider economic uncertainty.
Mortgage rates rise
Although the average rate on two and five year fixed mortgage at a 90% LTV fell month-on-month, down from 3.65% and 3.79% in January to 3.56% and 3.72% in February respectively, the average rates across all LTVs have increased.
Saying this, the average rate rise was only fractional. Increasing by 0.01% on all two year fixed LTVs and by 0.02% on all five year fixed LTVs month-on-month. Whilst these rates have only risen slightly it may be a sign of some stability in the market starting. Especially when compared to the drastic monthly increases witnessed over the course of the previous year.
Moneyfacts data also shows that the overall average two-year fix, at 2.53 per cent, is 0.11 per cent higher year-on-year, while the average five-year fix, at 2.73 per cent, is at the same level as in February 2020.
How to get the best mortgage deal
When looking at mortgage deals, it is important that you take into account a range of factors and not just the rate. For example, product fees and incentives may make a slightly more expensive deal a more attractive offer than a lower rate on a deal that has high product fees with no incentives. If you are unsure about which deal is best for you then please do get in contact with our expert advisors, who will take your unique circumstances into consideration when suggesting deals.
