Rachel Springall, Finance Expert at Moneyfacts, said:

“The number of mortgage products has risen to its highest point in over a year, boosting choice for consumers comparing deals and sets a positive movement across the market. The encouraging rise in products comes around six months on from the unprecedented uncertainty surrounding interest rates following the fiscal announcement. The month-on-month rise in products was a significant 774 options, and several loan-to-value brackets experienced a rise, including deals at 95% LTV which has breached 200 deals for the first time since September 2022 (274).

“Interest rate competition among lenders was mixed month-on-month, however it is widely expected that fixed mortgage rates will reduce over the next few months, but this will be determined by fluctuating swap rates and lenders appetite for business. Those borrowers with a large deposit or equity may be pleased to see the average rates at 60% loan-to-value for a two-year or five-year fixed mortgage stand below 5%. However, those who are coming off a two-year fixed mortgage and wish to refinance on the same term (60% LTV) may wish to note the average rate on a two-year fixed mortgage in April 2021 was 1.63%, compared to 4.95% for April 2023.

“Away from the fixed mortgage arena, variable interest rates have steadily been rising. The Bank of England base rate rose again last month to now stand at 4.25%, and our average Standard Variable Rate (SVR) has now hit 7.30%, its highest rate since February 2008 (7.31%). The average two-year tracker deal rate has also risen and breached 5% for the first time in over 14 years (December 2008 – 5.41%). Borrowers comparing both rates and the overall mortgage packages would be wise to seek independent financial advice to assess the true cost of any deal, and to ensure it’s the right time for them to refinance.”