The Press and Journal (Inverness, Highlands, and Islands)
Number of mortgage deals available doubles since October last year
The choice of mortgage products on the market has grown to more than double the level seen in the aftermath of the minibudget last autumn, according to a financial information website.
Moneyfacts counted 5,264 options available in May 2023, marking the highest total since February 2022, when 5,356 mortgage products were on the market.
In October last year, 2,258 deals were available. Many mortgage products had been pulled from sale amid market turmoil.
Moneyfacts said the number of options within the 15% and 25% deposit ranges is the highest on its records, suggesting a greater stability in the level of choice.
It counted 947 deals for people with a 25% deposit and 816 for people with a 15% deposit, in May. Both figures are the highest on Moneyfacts’ records going back to 2007.
Average two- and fiveyear fixed mortgage rates fell between the start of April and the start of May, to 5.26% and 4.97% respectively.
The average two-year tracker variable mortgage rate rose to stand at 5.07%. Bank of England base rate hikes have been pushing up costs for some borrowers.
The average standard variable rate (SVR) mortgage has continued to climb. At 7.37% typically, this rate is at its highest level since December 2007 (7.47%), Moneyfacts said.
Rachel Springall, a finance expert at Moneyfacts, said: “Promising as these signs may be, it is anticipated fixed interest rates will start to rise due to volatile swap rates (which lenders use to price mortgages), and for the eighth month running, the average fiveyear fixed mortgage rate rests lower than the twoyear equivalent.”