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Mortgage boost with over 3,500 products now available

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Mortgage product choice is up, but the bad news is that so are interest rates
Mortgage boost with over 3,500 products now available

Mortgage availability has risen for the fifth consecutive month, according to Moneyfacts.

The financial information provider said that there are currently 3,532 products on offer, the most since March 2020, when there were 5,222 products available.

Over the last two months alone availability has risen by 639 products, and over the last six months product numbers have increased by 1,120.

Eleanor Williams, finance expert at Moneyfacts, said: “Borrowers with varying levels of equity or deposit may be pleased to note continued improvements in product availability across the LTV tiers, except for 95% LTV where there are still just five specialist deals on offer.

“However, this may soon change with the Government-backed mortgage guarantee scheme from April where, up to this point in time, first-time buyers may have felt neglected. In 2020 mortgage products for those with small deposits nosedived and saving for a bigger deposit continues to be hampered by rock-bottom savings rates, while demand remains high for the limited number of affordable properties.”

Rates rising too

But it’s not all good news for borrowers. Average two-year fixed rates rose for an eighth consecutive month, increasing by 0.04% to 2.57% – the highest recorded since June of 2016.

Five year fixed rates also rose by 0.02% to 2.75%.

The average shelf life for all mortgage deals has fallen again to 26 days. According to Moneyfacts this demonstrates how fluid the sector is as providers regularly change their products, which means you have little time to bag a deal if you see one you like.

Williams added: “Mortgage product shelf life has plummeted to just 26 days after a rally last month, so providers are clearly amending their offerings in light of a changing economic environment and would-be borrowers may need to move quickly once they have decided on the best deal for their circumstances.”

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