5,000: That’s how many UK mortgages you can now choose from
The number of mortgage products in July shot up by 244 in just one month, topping 5,000 for the first time since March 2008, according to Moneyfacts.
A year ago there were 4,604 mortgage products, said the financial information provider, a figure that has rocketed to 5,035 today.
A Moneyfacts spokesperson said: “The market has significantly changed from 2008, when just over half (54%) of the products on the market were fixed rate compared to a whopping 82% this month.
“Unusually, the extra products on the market seem to have had little to no effect on average rates, with the average two-year fixed rate remaining unchanged at 2.52% this month. This suggests providers are currently trying to compete for mortgage business in other ways besides rate. Instead, they are opting to perhaps offer fee-free deals and products with incentive packages, which have in turn boosted product numbers.
“Providers had already made a lot of rate adjustments as they geared up for what seemed a certain base rate rise in May. Although the Bank of England did not increase it, providers have chosen to keep their higher rates, opting to be more cautious and wait and see whether an imminent base rate rise is likely.”