The latest research from Moneyfacts shows that the number of mortgage products that are available on the market is starting to go up again, after lenders withdrew products in the wake of the mini-budget.
Moneyfacts data indicates that, as of the 5th of October 2022, there are a total of 2,371 residential mortgage products on offer in the UK. At the start of the month, the number had fallen to 2,258, which was the lowest number the market had seen since 2010. Much of this was down to the widespread economic convulsions following the ‘mini-budget’ introduced by the new UK chancellor Kwasi Kwarteng, with that leading to lenders withdrawing mortgages from the market.
However, despite the encouraging addition of 113 more products, the total number available at the moment is still less than the 2,661 available on 28th September. It is to be hoped that a recovery which will restore product choice to those levels is now underway, however.
This is certainly needed, with average rates for both fixed rate five and two-year mortgages rising once again. For the former, the average rate is now 5.97%, while for the latter it has gone up to 6.07%.
Speaking to Mortgage Solutions, Rachel Springall from Moneyfacts stated that:
“Borrowers may well be concerned about the rise to fixed mortgage rates but it is essential they seek advice to assess the deals that are available to them right now.”
Rising product numbers make it easier for advisors with CeMAP training to find loans with rates that borrowers in different financial positions can manage to repay.