Rachel Springall, Finance Expert at Moneyfacts, said:

“The growing choice of mortgage options demonstrates a buoyant period for the market as the year end edges closer. Borrowers with a limited deposit or equity of just 5% may be pleased to find more choice of deals in this sector. The number of deals at 95% loan-to-value (LTV) has risen to its highest point since before the fiscal announcement of September 2022, with 254 deals compared to 274 at that time, which plummeted a month later to 132 options. However, if borrowers can stretch their budget by another 5%, they will find more than 700 options at 90% LTV, which is its highest count since February 2022 (735).

“Reduced volatility in the market from lenders during October was prevalent, with the average shelf-life of deals rising to 20 days on average, up from 16 days a month previously – edging further away from the record low of 12 days that was recorded in July 2023. These are promising signs that the market is settling and could result in more time for borrowers to take advantage of new offers. However, there is no telling how long this may last, as there are growing expectations for fixed rates to fall further, and this could impact the shelf-life of competitively priced deals. Lenders will need to carefully balance their pricing and consider any end-of-year targets they expect to hit.

“Fixed rates on average have now dropped for the third consecutive month and both the average two- and five-year fixed rates stand at their lowest points since June 2023. Year-on-year, the market has seen substantial recovery when it comes to choice, but there is still more room for improvement for those borrowers waiting for fixed rates to fall further before they secure a new deal. It is imperative borrowers approach their lender for support if they are struggling to keep up with repayments and seek independent advice to go through all the options available to them.”