The number of 90 per cent LTV products on the market has nearly doubled since last July, analysis from Moneyfacts show.
In July 2020 there were 70 of these mortgages available, a total that has since risen to 160. This is the largest monthly growth in availability, says Moneyfacts.
Meanwhile, in the same time span, the number of 85 per cent LTV deals on the market has grown from 356 to 439.
At 75 per cent LTV, the July 2020 count came in at 655 but has lowered slightly to 629 in January 2021.
While choice has improved, rates are higher than in July 2020. Across all LTVs, the average two-year fixed rate has gone up from 1.99 per cent to 2.52 per cent and the average five-year fix from 2.25 per cent to 2.71 per cent.
At 90 per cent LTV, the average two- and five-year fixed rates have increased from 2.90 per cent to 3.65 per cent and 3.16 per cent to 3.79 per cent, respectively.
It is worth noting, however, that in December 2020 the average two-year fixed rate at 90 per cent LTV stood at 3.79 per cent and the average five-year fix at 3.92 per cent.
Moneyfacts finance expert Eleanor Williams says: “Not only is the increase in product choice a positive for borrowers, but it seems that a measure of competition may have started to return to some sectors as well.
“At the higher end of the LTV tiers, both the average two and five-year fixed rate deals for those looking to secure a mortgage at 90 per cent LTV saw the largest monthly reductions, dropping by 0.14 per cent and 0.13 per cent respectively this month, while the equivalent rates at 85 per cent dropped by 0.05 per cent and 0.06 per cent respectively, indicating that lender confidence may be returning to this part of the market, despite the still uncertain economic outlook.
“However, not all LTV tiers saw rates fall, which has resulted in the overall two-year average rate continuing its march upwards for the sixth consecutive month. At 2.52 per cent, this is 0.08 per cent above where this rate sat this time last year and equals the high this rate last reached in January 2019.”
