Mortgage options are expanding, and rates are falling, which is good news for borrowers.
MORTGAGE rates have fallen, while the number of products available has increased recently, according to new research.
With the Stamp Duty Land Tax (SDLT) holiday coming to an end, many people will be eager to learn more about the variety of mortgage products available, as well as the rates available. And there’s good news for debtors and potential homeowners, according to the latest Moneyfacts UK Mortgage Trends Treasury Report data.
The research, which will be released later this week, shows that borrowers’ product options are expanding.
Not only that, but there has been an increase in rate competition, resulting in monthly decreases in overall average fixed rates as lenders compete for borrowers.
According to the study, mortgage availability has increased for nine months in a row.
With 4,512 deals available, the total product choice has reached its highest level in 16 months.
This is a 269-point gain over the previous month, and it’s the most it’s been since March 2020, when levels were at 5,222.
Moneyfacts also noted that availability has increased across all loan-to-value (LTV) categories for the first time since June 2018.
Borrowers looking for higher LTV products, on the other hand, have experienced the most improvement in options.
In instance, borrowers with a 95 percent LTV have experienced a 61 percent increase in products since June 2021.
There’s more positive news in terms of rates.
Moneyfacts discovered that the average overall two-year and five-year fixed rates declined throughout the course of the month for only the second time in the preceding 12 months, to 2.55 percent and 2.78 percent, respectively.
Both rates were reduced by 0.04 percent, marking the greatest monthly decreases for either rate since June 2020.
They are, however, a long way above their similar rates year-over-year, as the money comparison website recorded record lows of 1.99 percent and 2.25 percent for these rates in July 2020.
“The level of choice available to people searching for a residential mortgage has climbed dramatically again between June and July, as volumes rose by 269 new products, bringing the total accessible to over 4,500,” said Eleanor Williams, Finance Expert at Moneyfacts.
“In just the last six months, availability has increased by 1,619 – or 56 percent – and for the first time in history.”Brinkwire Summary News”.