The number of mortgage products on the market has increased by 16 per cent  to 2,782, marking the most substantial monthly jump for six years, figures from Moneyfacts reveal.

The number of deals at 90 per cent loan-to-value increased by 57 per cent  month on month from 56 to 88, but remained a fraction of the 765 products available a year ago.

The number of 85 per cent LTV deals increased by 15 per cent to 396, month on month but was still well short of the 668 products on offer in December 2019.

Average two-year fixed rates across all LTVs ticked upwards from 2.43 to 2.49 per cent, while five-year fixes dipped slightly from 2.7 to 2.69 per cent.

Finance expert Eleanor Williams says: “Echoing last month’s trend, the number of available mortgage deals has continued on an upwards trajectory.

“At 2,782, this is still 44 per cent fewer products than were on offer the same time last year, but it is still an improvement on the 53 per cent year-on-year market contraction seen last month. 

“This growth may be a reflection of lenders reacting to not only the level of pent-up demand from those looking to move following the first lockdown, but also the flood of would-be borrowers hoping to complete their new mortgage in time to benefit from the temporary stamp duty land tax holiday.  

“It is especially positive to note that the additional products launched this month are not exclusively available in the lower LTV tiers. 

“Despite a small fall in the products on offer at 95 per cent LTV (where it remains the case that the deals available are specialist products), 22 per cent of the new mortgages have been launched in the 85 per cent and 90 per cent LTV tiers. 

“This positive movement at the 90 per cent LTV in particular has been fuelled by a number of providers such as TSB, Yorkshire Building Society and Accord, among others, returning further deals to the market, which will no doubt come as great news to those with a smaller deposit/equity, who will have likely felt they had limited options open to them of late. 

“This also indicates that lenders are continuing to assess their ranges to meet demand. 

“Indeed, a number of the building societies launched deals for borrowers in their local areas, and Nationwide has indicated that it too will be increasing access to its 90 per cent LTV products; moves that may hopefully encourage more lenders to follow suit in the coming weeks.”