There were more than 5,200 mortgages products available last month, more than twice the number available in October 2022, after the tumultuous ‘mini-Budget’ caused widespread problems in the lending market. 

Figures from Moneyfacts show the number of new products coming to market has risen consistently in recent months, and at 5,263 this figure is the highest since February 2022, when there were 5,356 products available. 

There has been particularly strong growth in the higher LTV tiers, with the number of products at 75% LTV and 85% LTV at their highest level since Moneyfacts started collating this data.

Mortgage products are also available for longer, with the average ‘shelf life’ standing at 25 days; this compares to just 15 days in October last year.

When it comes to pricing, both the average two- and five-year fix rates fell between the start of April and the start of May to 5.26% and 4.97% respectively. The average two-year fix now 0.29% higher than the average five year equivalent.

However, these figures are still significantly higher than the average rates paid by those opting for fixed rate deals two or five years ago.

Given the increases to the Bank Rate, the price of the average trackers variable rates have increased over the month, with the Moneyfacts data showing the average two-year tracker now stands at 5.07%. 

Meanwhile the SVR, or ‘revert rate’ also increased to 7.37% at the start of May — the highest it has been since December 2007.

Moneyfacts finance expert Rachel Springall says: “The mortgage market is showing positive signs of resilience and growth, with product choice rising month on month.”

She pointed out that towards the end of 2022 the prices of fixed rate mortgages rose significantly, product choice fell, as did the average shelf life of a mortgage. 

She adds: “As was widely anticipated, variable rates continued to rise, but fixed mortgage rates rest lower on a month-on-month basis. Promising as these signs may be, it is anticipated fixed interest rates will start to rise due to volatile swap rates, and for the eighth month running, the average five-year fixed mortgage rate rests lower than the two-year equivalent. 

“Borrowers who are coming off a fixed rate deal may be understandably concerned about the rate difference between their existing rate and those on offer in the present market.”

Moneyfacts points out that in May 2021, the average two-year fixed mortgage rate stood at 2.57% — it is now more than double that. Those on a longer-term fixed mortgage may note the average five-year fixed mortgage rate in May 2018 stood at 2.91% but is now over 2% higher.