Eleanor Williams, Finance Expert at Moneyfacts, said:
“December sees the number of mortgage products on offer rise by 159 to reach 5,315, a level not reached since we recorded 6,192 products on offer in March 2008. Availability has now eclipsed that which was offered prior to the onset of the pandemic in March 2020 (5,222) and demonstrates a robust level of recovery in the residential sector.
“We recorded improvements in the level of choice across the majority of the LTV brackets but most markedly at 90% and 95% LTV where the number of products rose by 39 and 37 products respectively this month. While the number of options for borrowers considering deals in these brackets remains slightly below that recorded in December 2019, when compared year-on-year the improvement is clear. This is supported by the fact that the overall average LTV has reached 78.83% - which is the highest we have recorded since May 2019 (78.91%).
“Echoing the trends we noted last month, despite increases in the rates across most of the lower LTV sectors fuelling 0.05% month-on-month rises in overall average fixed rates, is the fact that at the top of the LTV spectrum average rates have dropped again. Borrowers with a 10% deposit or equity will find that, following monthly reductions of 0.03% and 0.07%, the average two- and five-year fixed rates of 2.51% and 2.95% are currently 1.28% and 0.97% lower than the equivalent rates on offer this time last year.
“It may be that, following the end of the stamp duty holiday which had kept the property market buoyant for much of 2021, providers are now focusing on enticing first-time buyer business, which has often been considered the life blood of the housing market. Indeed, those looking to secure a 95% LTV mortgage may be very pleased to note that at 3.09% and 3.39%, the average fixed rates on offer have plummeted to the lowest on our records (which go back to 2011). Due to rising house prices, mortgage affordability concerns and until recently limited product choice and higher rates, taking that first step onto the property ladder may have felt a distant possibility for many, so these positive figures may provide some hope to those who dream of owning their own home.”
Eleanor Williams, Finance Expert at Moneyfacts, said:
“December sees the number of mortgage products on offer rise by 159 to reach 5,315, a level not reached since we recorded 6,192 products on offer in March 2008. Availability has now eclipsed that which was offered prior to the onset of the pandemic in March 2020 (5,222) and demonstrates a robust level of recovery in the residential sector.
“We recorded improvements in the level of choice across the majority of the LTV brackets but most markedly at 90% and 95% LTV where the number of products rose by 39 and 37 products respectively this month. While the number of options for borrowers considering deals in these brackets remains slightly below that recorded in December 2019, when compared year-on-year the improvement is clear. This is supported by the fact that the overall average LTV has reached 78.83% - which is the highest we have recorded since May 2019 (78.91%).
“Echoing the trends we noted last month, despite increases in the rates across most of the lower LTV sectors fuelling 0.05% month-on-month rises in overall average fixed rates, is the fact that at the top of the LTV spectrum average rates have dropped again. Borrowers with a 10% deposit or equity will find that, following monthly reductions of 0.03% and 0.07%, the average two- and five-year fixed rates of 2.51% and 2.95% are currently 1.28% and 0.97% lower than the equivalent rates on offer this time last year.
“It may be that, following the end of the stamp duty holiday which had kept the property market buoyant for much of 2021, providers are now focusing on enticing first-time buyer business, which has often been considered the life blood of the housing market. Indeed, those looking to secure a 95% LTV mortgage may be very pleased to note that at 3.09% and 3.39%, the average fixed rates on offer have plummeted to the lowest on our records (which go back to 2011). Due to rising house prices, mortgage affordability concerns and until recently limited product choice and higher rates, taking that first step onto the property ladder may have felt a distant possibility for many, so these positive figures may provide some hope to those who dream of owning their own home.”
