Moneyfacts UK mortgage trends treasury report data, not yet published, reveals that the number of fixed rate residential mortgage products currently available at most loan-to-value (LTV) tiers are at a record high, with the number of total fixed rate mortgages available at maximum 60%, 75%, 85% and 90% LTV tiers at their highest levels since Moneyfacts treasury reports records began in July 2007.
The total number of residential mortgage products available in the market has increased from 5,181 in January 2019 to 5,214 this month. This puts it 644 products above what it was this time last year, when the total stood at 4,570.
Fixed rate mortgages, number of available products
|Maximum LTV tiers||60%||75%||80%||85%||90%||95%|
|Difference – Jan/Feb ’19||29||23||12||16||26||27|
Source: Moneyfacts Treasury Reports
Darren Cook, Finance Expert at Moneyfacts said, “Figures from the latest Moneyfacts UK Mortgage Trends Treasury Report show that the number of fixed rate products across many LTV tiers have increased to their highest levels in almost 12 years. At the 60% LTV tier, the number of products available increased by more than any other tier between January and February this year, rising from 459 to 488. However, the margins at this tier seem to be very narrow.
“Our recent research has already highlighted that competition on fixed mortgage interest rates among providers is rife at higher LTVs, as we have seen the average two-year fixed mortgage rate at maximum 95% LTV fall by 0.54% from 3.95% in August 2018 to 3.41% this month, while the average rate at maximum 60% LTV fell by 0.02% over the same period.
“Product availability is also increasing rapidly at the higher LTV tiers, with the number of products at the 90% and 95% LTV tiers rising by 26 and 27 respectively between January and February this year. This increased choice is more good news for first-time buyers this month, with rates dropping as a result of intense competition at these tiers.
“In February 2009, when the ramifications of the financial crisis were still being assessed, borrowers only had three products to choose from if they could only muster a 5% deposit. The mortgage lending environment has changed considerably since the Financial Conduct Authority introduced its clear affordability guidelines and today, a borrower seeking a 95% LTV mortgage has instead a total 325 mortgage products to choose from.”
The Moneyfacts UK Mortgage Trends Treasury Report, out later this month, provides an in-depth monthly review of today’s changing mortgage trends, including all the relevant facts on the UK’s residential and buy-to-let markets.