The latest data from Moneyfacts UK Mortgage Trends Treasury Report shows a significant increase in mortgage options for borrowers with small deposits.
The number of 95% loan-to-value (LTV) mortgages has reached 254, the highest since before the mini-Budget in September 2022, when there were 274 deals.
This count exceeds last month’s options and is the highest since February 2022, when there were 735 deals at 90% LTV.
Overall product choice in the mortgage market has risen for the fourth consecutive month, now at 5,678 options, the highest in over 15 years. The last time more deals were available was in March 2008.
The average shelf-life of mortgage products has increased to 20 days, the longest since June 2023. Average fixed rates across all LTV tiers for both 2-year and 5-year fixed rate deals have fallen for the third consecutive month. The average 2-year fixed rate is now at 6.29%, and the 5-year rate at 5.86%.
However, the average Standard Variable Rate (SVR) has risen to 8.19%, the highest since Moneyfacts’ records began in July 2007.
Rachel Springall, finance expert at Moneyfacts, said: “The growing choice of mortgage options demonstrates a buoyant period for the market as the year-end edges closer. Borrowers with just 5% deposit or equity will find more choices in this sector.
“Reduced volatility in the market during October was prevalent, with the average shelf-life of deals rising. These are promising signs that the market is settling.
“Fixed rates on average have now dropped for the third consecutive month, with both the average 2-year and 5-year fixed rates at their lowest since June 2023.”
