The cost of mortgages continues to drop, as the number of products on offer rises.
That’s according to Moneyfacts, which said that the number of mortgage options for borrowers is up by over 200 products month-on-month.
Product choice overall rose to 5,899 options, the highest level of availability in over 15 years.
The average shelf life of a mortgage deal has also risen to 21 days, said the financial information provider.
Not only do borrowers have more choice, they are also enjoying lower rates (although if they have an existing mortgage, it’s likely they are still higher than they’ve been used to paying).
Six-month low for mortgage rates
Average rates are now at their lowest level in six months across two- and five-year fixed mortgages, said Moneyfacts.
The overall average two- and five-year fixed rates fell between the start of December and the start of January, to 5.93 per cent and 5.55 per cent respectively; the last time these were below six per cent was in June 2023.
The average ‘revert to’ rate or Standard Variable Rate (SVR) fell slightly by one basis point, to 8.18 per cent, while the average two-year tracker rate fell month-on-month to 6.15 per cent.
Rachel Springall, finance expert at Moneyfacts, said: “There are big expectations for fixed mortgage rates to fall in the coming weeks, so some borrowers may choose to wait patiently for the right time to change their deal or buy their first home.
“A rise in choice and cheaper mortgage rates are promising signs for those looking to refinance this year. However, those coming off either a two- or five-year fixed mortgage will be paying around three percentage points more on their mortgage, based on our average rates, when they lock into a similar term for peace of mind.”
