Rachel Springall, Finance Expert at Moneyfacts, said:

“The mortgage market has shown notable stability with product choice, as the total number of mortgage options has breached 4,000 for the first time since August 2022. Shelf life of mortgage deals has also stabilised to 28 days compared to 15 days seen a month ago. Lenders have gradually been cutting down their mortgage fixed pricing over this period, leading to the third consecutive month of falls to the average two- and five-year fixed rates. However, rate competition appears more focused towards five-year fixed deals, and the rate difference between this and the average two-year fixed of 0.24% is the largest margin seen in almost 15 years (March 2008 – 0.31%).

“Borrowers with a limited deposit may be pleased to see choice expand month-on-month and that both the two- and five-year average fixed rates at 95% loan-to-value sit below 6% for the first time since October 2022. On the other end of the spectrum, both choice and rates at 60% loan-to-value improved, following a rise of 122 to 606, availability within this tier is at its highest level in three years (February 2020 – 611). These movements show that borrowers on both ends of these loan-to-value tiers could now find lower rates and more choice, but it would be understandable if they were to wait a bit longer for rates to come down.

“Those borrowers sitting on their revert rate may wish to note the average SVR stands at its highest point since October 2008, so switching to a fixed deal may help them reduce their monthly mortgage repayments and give them peace of mind. If borrowers want a bit more flexibility to come out of their deal quickly, a tracker mortgage could be a worthy choice, but they must keep in mind that their rate could rise as well as fall in the months to come. It is imperative borrowers take time to seek advice to ensure they are considering all the options available, particularly as fixed interest rates are expected to fall further in the coming months.”