Analysis showed numbers of products had risen for the fifth consecutive month, climbing to 3,532 – this is the highest Moneyfacts has observed since March 2020 when numbers were at 5,222.
Experts at the data analysts think last week’s Budget announcement of a stamp duty holiday extension and the mortgage guarantee scheme has given lenders a confidence boost which has impacted the higher loan-to-value market.
Indeed, in the last two months alone availability has risen by 639 products. In the 90% LTV market numbers have risen from 248 in February to 323 in March, according to Moneyfacts.
Eleanor Williams, finance expert at Moneyfacts, said: “Mortgage product availability has improved dramatically with a further 317 products this month raising the total to 3,532, now at its highest level seen since a year ago.”
She added: “Growth in product availability appears to follow demand, as separate data from UK Finance indicated that purchase numbers from the final quarter of 2020 were at a level not seen since 2007 and demand may remain high due to the Budget announcement on borrower support.
“Borrowers with varying levels of equity or deposit may be pleased to note continued improvements in product availability across the LTV tiers, except for 95% LTV where there are still just five specialist deals on offer.
“However, this may soon change with the government-backed mortgage guarantee scheme from April where, up to this point in time, first-time buyers may have felt neglected.”
Rates
Moneyfacts also revealed the two-year fixed rate for all LTVs rose for an eighth consecutive month, increasing by 0.04% to 2.57% and is the highest it had recorded since June of 2016.
Seeing an increase of 0.02% to 2.75%, the equivalent five-year fixed rate also rose and is at a high not seen since November 2019.
The average shelf life for all mortgage deals, after a reprieve last month, had also fallen again, this time to 26 days – the lowest on our records since May 2017.
This demonstrated, said Moneyfacts, how fluid the sector was as providers amended their offerings with regularity, leaving borrowers with little time to secure their chosen product.
| Mortgage market analysis (Source: Moneyfacts) | ||||||
| Mar-20 | Sep-20 | Jan-21 | Feb-21 | Mar-21 | ||
| Fixed and variable rate products | Total product count – all LTVs | 5,222 | 2,412 | 2,893 | 3,215 | 3,532 |
| Product count – 95% LTV | 391 | 14 | 8 | 5 | 5 | |
| Product count – 90% LTV | 779 | 62 | 160 | 248 | 323 | |
| Product count – 75% LTV | 845 | 559 | 629 | 656 | 716 | |
| All LTVs | Average two-year fixed rate | 2.43% | 2.24% | 2.52% | 2.53% | 2.57% |
| Average five-year fixed rate | 2.74% | 2.49% | 2.71% | 2.73% | 2.75% | |
| 90% LTV | Average two-year fixed rate | 2.57% | 3.32% | 3.65% | 3.56% | 3.52% |
| Average five-year fixed rate | 2.91% | 3.50% | 3.79% | 3.72% | 3.66% | |
| 75% LTV | Average two-year fixed rate | 2.29% | 2.10% | 2.27% | 2.28% | 2.27% |
| Average five-year fixed rate | 2.56% | 2.33% | 2.38% | 2.47% | 2.46% | |
| All products | Shelf life (days) | 35 | 29 | 28 | 40 | 26 |
| Data shown is as at the first available day of the month, unless stated otherwise. Source: Moneyfacts Treasury Reports | ||||||
