The number of mortgage products on the market has exceeded 4,000 since coronavirus hit the UK’s shores.
Data from Moneyfacts shows that as of the start of June 2021, there were 4,243 mortgages for potential borrowers to choose from, up from 3,927 at the start of May 2021.
In June 2020, there were just 2,810 mortgages on the market.
As well as choice improving overall, the number of 95% LTV mortgages on the market increased from 112 in May to 192 in June.
“Over the course of the past month, 33 new two-year fixed rate products were launched [at 95% LTV], seeing the average fixed rate drop by a substantial 0.14% [since May] to 3.88% – the lowest this has been since it fell to 3.28% in June 2020, when availability had shrunk to just 31 deals,” says Moneyfacts finance expert Eleanor Williams.
She adds: “Those seeking a five-year fixed rate in this tier have 27 further product options launched this month, and also saw a notable drop in the average rate, falling by 0.10% to sit at 4.07%.
“While these remain some 0.63% and 0.40% above where these rates were in June 2019, it seems that the trajectory is moving in the right direction.”
And at 60% LTV, the number of products available has edged up from 527 in May 2021 to 534 in June 2021. This compares to 545 products on the market in June 2020.
Here, while product numbers have contracted, the average rate for a two-year fix has dropped from 1.73% in June 2020 to 1.61% in June this year and the average five-year fix has fallen from 2.02% to 1.81% across the same time frame.
In the meantime, the average shelf life for all mortgage products has gone from 31 days last June to 28 days today.
Williams concludes: “As well as changes in the top LTV tiers, rate competition has become evident at the opposite extreme of the LTV spectrum, with a number of lenders launching eye-catching sub-1% mortgage deals in the lowest LTV brackets.
“These record-low rates are available to low-risk borrowers with high levels of equity, but as to whether this competition will extend to higher-LTV deals remains to be seen as we navigate the full economic impact of the last year.”
