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Choice of low deposit mortgages hits two-year high

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Rachel Springall, Press Officer
Rachel Springall, Press Officer / Finance Expert T: 01603 476210 E: Email Rachel
08/07/2024

Choice of low deposit mortgages hits two-year high

Moneyfacts UK Mortgage Trends Treasury Report data reveals the availability of deals at 95% loan-to-value rose to its highest point in over two years. Overall, it was the fifth consecutive month of rate rises to the two- and five-year fixed mortgage rates.

 

Choice of low deposit mortgages hits two-year high

Moneyfacts UK Mortgage Trends Treasury Report data reveals the availability of deals at 95% loan-to-value rose to its highest point in over two years. Overall, it was the fifth consecutive month of rate rises to the two- and five-year fixed mortgage rates.

 

  • The availability of deals at the 95% loan-to-value tier rose to 361, now at its highest point in over two years (369 – May 2022).
  • Product choice overall rose month-on-month, to 6,658 options, its highest level since February 2008 (6,760).
  • The average shelf-life of a mortgage product rose to 30 days, up from 15 days a month prior. The lowest shelf-life average on our records was 13 days in July 2023.
  • Average mortgage rate rises on overall two- and five-year fixed rate deals were more modest, up by 0.02% and 0.03% respectively. This marks the fifth consecutive month of rises. These rates remain slightly lower compared to December 2023. The average two-year fixed rate is slightly higher compared to January 2024.
  • The overall average two- and five-year fixed rates rose between the start of June and the start of July, to 5.95% and 5.53% respectively. The average two-year fixed rate is 0.42% higher than the five-year equivalent.
  • The average two-year tracker variable mortgage remained at 5.94%.
  • The average ‘revert to’ rate or Standard Variable Rate (SVR) fell to 8.17%, just shy of the highest recorded (8.19%) during November and December 2023.

 

  • The availability of deals at the 95% loan-to-value tier rose to 361, now at its highest point in over two years (369 – May 2022).
  • Product choice overall rose month-on-month, to 6,658 options, its highest level since February 2008 (6,760).
  • The average shelf-life of a mortgage product rose to 30 days, up from 15 days a month prior. The lowest shelf-life average on our records was 13 days in July 2023.
  • Average mortgage rate rises on overall two- and five-year fixed rate deals were more modest, up by 0.02% and 0.03% respectively. This marks the fifth consecutive month of rises. These rates remain slightly lower compared to December 2023. The average two-year fixed rate is slightly higher compared to January 2024.
  • The overall average two- and five-year fixed rates rose between the start of June and the start of July, to 5.95% and 5.53% respectively. The average two-year fixed rate is 0.42% higher than the five-year equivalent.
  • The average two-year tracker variable mortgage remained at 5.94%.
  • The average ‘revert to’ rate or Standard Variable Rate (SVR) fell to 8.17%, just shy of the highest recorded (8.19%) during November and December 2023.

 

Mortgage market analysis

 

Jun-22

Jun-23

Jan-24

Jun-24

Jul-24

Fixed and variable rate products

Total product count - all LTVs

4,556

4,396

5,899

6,629

6,658

Product count - 95% LTV

316

188

270

353

361

Product count - 90% LTV

598

525

733

792

792

Product count - 60% LTV

505

511

682

733

741

All products

Shelf life (days)

23

13

21

15

30

All LTVs

Average two-year fixed rate

3.74%

6.41%

5.93%

5.93%

5.95%

Average five-year fixed rate

3.89%

5.97%

5.55%

5.50%

5.53%

95% LTV

Average two-year fixed rate

3.96%

6.80%

6.21%

6.20%

6.26%

Average five-year fixed rate

3.97%

6.01%

5.62%

5.73%

5.78%

90% LTV

Average two-year fixed rate

3.81%

6.39%

5.94%

6.15%

6.18%

Average five-year fixed rate

3.87%

5.81%

5.65%

5.61%

5.64%

60% LTV

Average two-year fixed rate

3.43%

6.15%

5.41%

5.45%

5.45%

Average five-year fixed rate

3.64%

5.74%

5.06%

5.06%

5.06%

All LTVs

Standard Variable Rate (SVR)

5.06%

7.67%

8.18%

8.18%

8.17%

All LTVs

Average two-year tracker rate

2.74%

5.96%

6.15%

5.94%

5.94%

Data shown is as at the first available day of the month, unless stated otherwise.

Source: Moneyfacts Treasury Reports

 

Mortgage market analysis

 

Jun-22

Jun-23

Jan-24

Jun-24

Jul-24

Fixed and variable rate products

Total product count - all LTVs

4,556

4,396

5,899

6,629

6,658

Product count - 95% LTV

316

188

270

353

361

Product count - 90% LTV

598

525

733

792

792

Product count - 60% LTV

505

511

682

733

741

All products

Shelf life (days)

23

13

21

15

30

All LTVs

Average two-year fixed rate

3.74%

6.41%

5.93%

5.93%

5.95%

Average five-year fixed rate

3.89%

5.97%

5.55%

5.50%

5.53%

95% LTV

Average two-year fixed rate

3.96%

6.80%

6.21%

6.20%

6.26%

Average five-year fixed rate

3.97%

6.01%

5.62%

5.73%

5.78%

90% LTV

Average two-year fixed rate

3.81%

6.39%

5.94%

6.15%

6.18%

Average five-year fixed rate

3.87%

5.81%

5.65%

5.61%

5.64%

60% LTV

Average two-year fixed rate

3.43%

6.15%

5.41%

5.45%

5.45%

Average five-year fixed rate

3.64%

5.74%

5.06%

5.06%

5.06%

All LTVs

Standard Variable Rate (SVR)

5.06%

7.67%

8.18%

8.18%

8.17%

All LTVs

Average two-year tracker rate

2.74%

5.96%

6.15%

5.94%

5.94%

Data shown is as at the first available day of the month, unless stated otherwise.

Source: Moneyfacts Treasury Reports

 

Rachel Springall, Finance Expert at Moneyfacts, said:

“Borrowers who have a limited deposit may be pleased to see a rise in the number of mortgages available at 95% loan-to-value this month, reaching a two-year high. There are now 361 options available, the highest count since May 2022, when there were 369 deals. There is lots of room for growth in this area of the market, as it currently represents just 5% of all deals available to borrowers across fixed and variable mortgages. Overall product availability continued to rise, spreading a positive sentiment on mortgage choice for another consecutive month, its highest point in 16 years.

“The overall average two- and five-year fixed mortgage rates rose for a fifth consecutive month may come as disappointing news to borrowers. However, one positive aspect to take away from activity during June is that the rises were modest. One notable difference month-on-month has been a return to the stability in the shelf life of a mortgage deal, which has doubled to 30 days, up from 15 days. Lenders have been repricing their deals in response to volatile swap rates, which calmed during June. If swap rates reach a turning point to drop then there will be an expectation for fixed mortgage rates to come down, but this may be a slow and steady process to have a huge impact on overall average rates.

“The concerns surrounding mortgage affordability among borrowers remains and the Government will no doubt be under the spotlight to see what plans may be set in motion to support homebuyers and those looking to get onto the property ladder. Those borrowers coming off a fixed rate deal this year will note the average Standard Variable Rate is above 8%, so considering a lower rate fixed or tracker mortgage would be wise. There are over 400 different tracker mortgages on the market, and any that track the Bank of England base rate may suit those who believe that base rate will come down before the year is over. It is essential that any borrowers who are struggling seek advice from their lender and an independent broker to navigate the latest deals available to them.”

Rachel Springall, Finance Expert at Moneyfacts, said:

“Borrowers who have a limited deposit may be pleased to see a rise in the number of mortgages available at 95% loan-to-value this month, reaching a two-year high. There are now 361 options available, the highest count since May 2022, when there were 369 deals. There is lots of room for growth in this area of the market, as it currently represents just 5% of all deals available to borrowers across fixed and variable mortgages. Overall product availability continued to rise, spreading a positive sentiment on mortgage choice for another consecutive month, its highest point in 16 years.

“The overall average two- and five-year fixed mortgage rates rose for a fifth consecutive month may come as disappointing news to borrowers. However, one positive aspect to take away from activity during June is that the rises were modest. One notable difference month-on-month has been a return to the stability in the shelf life of a mortgage deal, which has doubled to 30 days, up from 15 days. Lenders have been repricing their deals in response to volatile swap rates, which calmed during June. If swap rates reach a turning point to drop then there will be an expectation for fixed mortgage rates to come down, but this may be a slow and steady process to have a huge impact on overall average rates.

“The concerns surrounding mortgage affordability among borrowers remains and the Government will no doubt be under the spotlight to see what plans may be set in motion to support homebuyers and those looking to get onto the property ladder. Those borrowers coming off a fixed rate deal this year will note the average Standard Variable Rate is above 8%, so considering a lower rate fixed or tracker mortgage would be wise. There are over 400 different tracker mortgages on the market, and any that track the Bank of England base rate may suit those who believe that base rate will come down before the year is over. It is essential that any borrowers who are struggling seek advice from their lender and an independent broker to navigate the latest deals available to them.”

Notes to editors

Pioneering financial comparison technology for over 35 years.

Moneyfacts Group plc is the UK’s leading provider of retail financial product data. Used by virtually every bank and building society in the UK, and supplied to the Bank of England, Financial Conduct Authority, Financial Ombudsman Service, HM Treasury, Prudential Regulatory Authority and UK Finance.

Our expert research team monitors the thousands of mortgages, savings, credit card, personal loan, business banking, life, pension and investment products in the UK.

Moneyfacts is the UK's leading independent provider of finance product data. For over 35 years Moneyfacts' information has been a key driver behind personal finance product decisions.

For more information about us please see our key facts.

Broadcast

Our broadcast suite enables our finance experts to appear in-vision for television, and we regularly comment live on national and regional radio.

To arrange an interview for radio or television, please contact our press department. We have an in-house broadcast room.

 

Notes to editors

Pioneering financial comparison technology for over 35 years.

Moneyfacts Group plc is the UK’s leading provider of retail financial product data. Used by virtually every bank and building society in the UK, and supplied to the Bank of England, Financial Conduct Authority, Financial Ombudsman Service, HM Treasury, Prudential Regulatory Authority and UK Finance.

Our expert research team monitors the thousands of mortgages, savings, credit card, personal loan, business banking, life, pension and investment products in the UK.

Moneyfacts is the UK's leading independent provider of finance product data. For over 35 years Moneyfacts' information has been a key driver behind personal finance product decisions.

For more information about us please see our key facts.

Broadcast

Our broadcast suite enables our finance experts to appear in-vision for television, and we regularly comment live on national and regional radio.

To arrange an interview for radio or television, please contact our press department. We have an in-house broadcast room.

 

Contact Us If you're looking for extra comment, a chart or more information, then please give us a call. We are always more than happy to help.
Rachel Springall Press Officer / Finance Expert
Caitlyn Eastell Apprentice Press & PR Assistant