
Use our range of mortgage calculators to work out how much you could borrow.
The number of mortgage products on offer has rocketed by more than a third since April.
The latest figures from Moneyfacts.co.uk report that there are now 1,624 mortgages deals on the market, up from 1,209 in April.
That is still a massive reduction on the 15,599 deals that were available at the peak of the market in July 2007, but is a further positive sign that competition is returning to the market, albeit slowly.
The greatest increase has been in the number of two-year fixed rate mortgage products. In April there were just 250 such deals to choose from, while today there are 405. The average interest rate charged on a two-year fixed rate has fallen from a peak of 5.21% in August to 4.93%.
There are now 352 three-year fixed rate deals available, a 22% increase since April, and 297 rates fixed for five years or more, compared to 259 in April. In contrast to two-year deals, the cost of three-year fixed rates has risen since the summer to stand at an average of 5.6%, while a five-year fix will cost 6.15% on average.
The number of mortgages on offer for borrowers with small deposits is still severely limited – there are nine deals available at 95% loan to value, up from just three in April. And there are 116 for those with a 10% deposit to choose from, up from 72 in April.
Michelle Slade, spokeswoman for Moneyfacts.co.uk, said:
"In such uncertain times, borrowers and lenders alike seem to prefer shorter term deals, where changes can be made relatively quickly if market conditions change dramatically. Increased competition in the two-year market has increased the competitiveness of the deals available, but at £928, the average arrangement fee remains more than £100 higher than on longer deals.
"Borrowers' love affair with shorter term deals means lenders benefit from the increased frequency with which arrangement fees become payable."
Rob Davies explains how best to use the Internet to get a good mortgage deal
The March/April 2010 issue of Your Mortgage is on sale now. In it we look at the pros and cons of Mortgage Payment Protection Insurance; we list the 10 golden rules that every first-time buyer should know; weigh up the relative merits of fixed rates and tracker mortgages and explain how equity release schemes can help older homeowners. Get your copy for the latest news, information and help.
The Your Mortgage Awards aim to reward those lenders that have excelled in providing innovative and competitive products. Widely regarded as the UK's definitive consumer mortgage awards, the Your Mortgage Awards have now been running for 20 years.





Login to add a comment
Need to register? Click Here