The number of mortgage products available to borrowers has increased significantly in June compared to early May, according to data from Moneyfacts. This rise in availability comes as lenders compete more aggressively for business, offering a wider range of options for homebuyers and those remortgaging.
Sharp Increase in Mortgage Product Numbers
Moneyfacts reported that there were 4,573 mortgage deals on the market in early June, up from 4,356 in early May. This represents an increase of 217 products, or approximately 5%. The data highlights a continued recovery in the mortgage market after a period of reduced availability following the mini-Budget in September 2022.
Lenders Competing for Business
The rise in product numbers is driven by lenders seeking to attract borrowers. Many have been cutting rates and offering competitive deals, particularly for those with larger deposits. This has led to a more favorable environment for buyers and those looking to remortgage.
Rachel Springall, a finance expert at Moneyfacts, commented: "Borrowers will be pleased to see that mortgage choice has improved over the past month. Lenders are vying for business, which has led to a rise in product availability and some competitive rates."
Fixed-Rate Deals on the Rise
The data also showed that the number of fixed-rate mortgage deals increased. There were 4,104 fixed-rate products available in early June, up from 3,908 in early May. This category includes both two-year and five-year fixed-rate mortgages, which remain popular among borrowers seeking certainty in their monthly payments.
Implications for Borrowers
With more deals on the market, borrowers have a greater choice of mortgage products. This can help them find a deal that suits their individual circumstances, whether they are first-time buyers, home movers, or remortgaging. However, experts advise that borrowers should still shop around and consider seeking independent advice to secure the best possible deal.
The increase in mortgage availability is a positive sign for the housing market, which has faced challenges due to rising interest rates and economic uncertainty. While mortgage rates remain higher than a year ago, the growing number of options may help stimulate activity in the market.
Outlook for the Mortgage Market
Looking ahead, analysts expect mortgage product availability to continue improving, provided that economic conditions remain stable. Lenders are likely to maintain their competitive stance, which could lead to further rate reductions and product innovations. Borrowers are advised to keep a close eye on the market and be ready to act when they find a suitable deal.
