Over 200 products came to market this month, the shelf life of mortgage deals rose and average two- and five-year fixed-rate home loans fell for the fifth month in a row, data from Moneyfacts shows. 

Product choice lifted for a sixth consecutive month in January, to 5,899 options, from 5,694 in December, says the data group’s latest Mortgage Trends Treasury Report, as the market takes advantage of stable interest rates. 

This is the highest level of availability in over 15 years — the last time there were more deals available was March 2008 when the market held 6,192 products. 

The study adds that the average shelf-life of a mortgage product rose to 21 days, the highest figure since June 2023 when the figure hit 22 days. 

Average two- and five-year fixes fell between the start of December and the start of January, to 5.93% and 5.55% respectively — the last time these were below 6% was in June 2023.   

The average ‘revert to’ rate, or standard variable rate fell slightly by 1 basis point to 8.18% over the same period. 

Moneyfacts finance expert Rachel Springall says: “The consecutive reductions to the overall average two- and five-year fixed mortgage rates will be of great relief for borrowers looking to refinance this year.  

“The volatility surrounding mortgage rate pricing eased, as the average mortgage shelf life rose from 17 days to 21 days, the highest figure recorded in over six months.  

“There are big expectations for fixed mortgage rates to fall in the coming weeks, so some borrowers may choose to wait patiently for the right time to change their deal or buy their first home.” 

Springall adds: “Borrowers with a limited deposit or equity, such as first-time buyers, are benefiting from an increase in product choice and lower mortgage rates.  

“The availability of deals at the 95% loan-to-value tier, at 270 products, has increased to the highest level since September 2022, from 274 products, and the average two- and five-year fixed rates at this tier are at their lowest since June 2023.”