New figures released by Moneyfacts show that the number of mortgage products being offered by lenders is rising at the same time as fixed-rate levels continue to drop.
These figures show that there has been a steady month-on-month increase in the number of products on the market for the past nine months. It means that choice is now at the highest it has been for 16 months, as there are currently 4,512 products available from UK lenders. This represents a rise of 269 just in the past month, and it provides borrowers with the most options they have had since March of last year.
According to Moneyfacts, the number of products has risen at every loan-to-value (LTV) level, marking the first occasion this has happened in three years. It is higher LTV loans – notably, 95% products – that have increased the most, with a further 61 of these loans launched since last month.
The rise in product numbers is also helping to bring rates down, as lenders compete with each other in a crowded marketplace. Average rates for both two and five-year fixed mortgages dropped in the past month, in both cases by 0.04%.
Speaking to Financial Reporter, Eleanor Williams from Moneyfacts pointed out that while all of this was good news for borrowers, the current fall in average mortgage rates may not continue, and for that reason getting professional advice to find the right deal makes sense.
Those with the right CeMAP mortgage advisor qualification will be in demand among borrowers due to market volatility.