Mortgage product choice at 95% loan-to-value (LTV) rose month-on-month in October, representing 24% of the core deals in the market, Moneyfacts data reveals.
However, the Moneyfacts UK mortgage trends treasury report finds, choice at 60% LTV dipped over the same period, its lowest count since March 2024.
Borrowers with a limited deposit or equity of 5% or 10% will find the average fixed rates at 95% and 90% LTV rose across the board, further above 6%.
Meanwhile, the Moneyfacts average LTV of a core mortgage product hit a record high of 79.31% since records started in November 2011.
In October, data reveals that mortgage product churn calmed slightly with the average shelf-life of a deal increasing to 17 days, four days more than the month prior, down from 21 days a year ago.
The Moneyfacts average new mortgage rate went up by 0.06%, from 5.83% in October to 5.89% at the start of November, its highest point in three years.
The rate was last below 5% in March 2026 (4.90%) and last above 6% in November 2023 (6.07%).
The overall average two- and five-year fixed rates are higher than they were at the start of October, but Moneyfacts says they may fall before the end of the year, as more certainty on the future path of interest rates transpires.
Moneyfacts finance expert Rachel Springall says: “Due to choice contracting slightly at lower LTVs, the Moneyfacts average LTV of a core mortgage product has reached a record high of 79.31%, its highest point since electronic records began in November 2011.”
“This shift comes at a time when lenders have faced months of uncertainty surrounding the path of interest rates, and wider market concerns over weak demand for property amid a cost of living crisis. In an attempt to help more people buy their first home, the Government’s Your First Home scheme opens for pre-registration next month, to allow new buyers to check their eligibility.”
Springall adds: “As affordable housing remains in short supply, lenders will need to work hard to loosen affordability barriers without increasing risk in line with new rules, and continue to innovate products to help new buyers, and support their existing mortgage customers.”
