The availability of low-deposit deals on the market is at the highest level in more than two years, according to Moneyfacts data.   

The number of offers at the 95% loan-to-value tier rose to 361, the highest since May 2022, when deals totalled 369, the data firm’s June Mortgage Trends Treasury Report points out.  

Across the whole of the market, product choice rose month-on-month to 6,658, the highest level since February 2008, when lenders offered 6,760 deals.  

The average shelf-life of a mortgage product rose to 30 days, up from 15 days a month ago. The lowest shelf-life average in the data group’s records was 13 days in July 2023.  

Average mortgage rate rises on overall two- and five-year fixed rate deals were more modest, up by 2 basis points and 3 basis points, respectively.   

The report says: “This marks the fifth consecutive month of rises. These rates remain slightly lower compared to December 2023. The average two-year fixed rate is slightly higher compared to January 2024.”  

The overall average two- and five-year fixes rose between the start of June and the start of July, to 5.95% and 5.53%, respectively. The average two-year fixed rate is 42 basis points higher than the five-year equivalent.  

The average two-year tracker variable mortgage remained at 5.94%.  

The average ‘revert to’ rate, or standard variable rate, fell to 8.17%, just shy of the record high, of 8.19%, posted during November and December 2023.  

Moneyfacts finance expert Rachel Springall says: “There is lots of room for growth in this area of the market [low-deposit mortgages], as it currently represents just 5% of all deals available to borrowers across fixed and variable mortgages.   

“Overall, product availability continued to rise, spreading a positive sentiment on mortgage choice for another consecutive month, its highest point in 16 years.”  

Springall adds: “The overall average two- and five-year fixed mortgage rates rose for a fifth consecutive month may come as disappointing news to borrowers.   

“However, one positive aspect to take away from activity during June is that the rises were modest. One notable difference month-on-month has been a return to the stability in the shelf life of a mortgage deal, which has doubled to 30 days, up from 15 days.”  

She points out: “The concerns surrounding mortgage affordability among borrowers remain and the government will no doubt be under the spotlight to see what plans may be set in motion to support homebuyers and those looking to get onto the property ladder.”