Mortgage product choice has bounced back, reaching 6,645 options, according to the Moneyfacts UK Mortgage Trends Treasury Report.
This was the first increase since July 2024, and the highest count since February 2008, apart from July and August 2024.
The number of mortgage products has nearly tripled in the past two years, compared to October 2022 when there were only 2,258 products available.
The average shelf-life of a mortgage product remained unchanged at 21 days.
Average mortgage rates for 2- and 5-year fixed-rate deals fell to 5.40% and 5.07% respectively, the lowest levels since May 2023.
The average 2-year fixed rate was 0.33% higher than the 5-year equivalent, and this has been the case since October 2022.
The average 2-year tracker variable mortgage fell slightly to 5.67%, while the average standard variable rate (SVR) decreased to 7.96%.
Rachel Springall, finance expert at Moneyfacts, said: “Mortgage product choice bounced back after two months of falls, which is an encouraging sign for the market.
“Lenders continued to cut fixed mortgage rates but there was a much calmer rotation of products, as the average shelf-life of a mortgage remained at 21 days.
“These moves show the promising attitude of lenders to draw in new customers, which may be even more pressing as we edge closer to any of their end of year targets.
“Last month falling swap rates encouraged lenders to cut rates, but a combination of the looming Budget, concerns over inflation and other global influences can result in market pricing uncertainty.
“However, there are still expectations for the Bank of England base rate to drop further before the year is over.”
Springall added: “Fixed rate pricing has been positive in recent months, seeing both the average two- and five-year fixed rates drop to their lowest levels since May 2023, and the market is in a much more positive space compared to two years ago, in the aftermath of the fiscal announcement at the end of September 2022.
“There are almost treble the products available now compared to October 2022. Month-on-month, one of the largest loan-to-value tiers to rise in choice was at 60% LTV, now at its highest count on Moneyfacts’ records.
“There was also growth in tiers at 90% and 95%, good news for those with a small deposit or equity, such as first-time buyers.”
“All eyes will be on the pending Budget and the next base rate decision day for borrowers, but in the meantime, it would be wise for them to seek independent advice to explore the latest options.
“Lenders will no doubt be watching the markets closely, so they may react to changes suddenly.
“As a result, as we have seen in the past, some deals could be pulled as lenders try to assess their current margins.”
