New data from the Moneyfacts UK Mortgage Trends Treasury Report indicates a rise in the number of mortgage options available to borrowers. The number of choices has increased to 5,338, the highest since February 2022, offering a glimmer of market stabilisation.
Among individual loan-to-value (LTV) tiers, options within the 85% LTV tier are at record highs according to Moneyfacts’ data. Additionally, the average shelf life of a mortgage product has risen to 15 days from a record low of 12 days in July 2023.
Average 2-year and 5-year fixed rates have decreased to 6.70% and 6.19% respectively. Conversely, the standard variable rate (SVR) has reached a record 8.09% high.
Rachel Springall, finance expert at Moneyfacts, said: “Mortgage product choice has grown to its highest level since February 2022 and average rates are gradually falling. This positive momentum has resulted in the average shelf life of a mortgage product rising to 15 years, up from a record low of 12 days in July.”
Springall also added: “Those borrowers who are about to come off a fixed rate deal or are sitting on their revert rate may now wish to explore their options to refinance, particularly as the average SVR stands at a record high of 8.09%.”
On the future of the mortgage market, Springall added: “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.”
