Residential mortgage availability has soared, said Moneyfacts, breaking through the 5,000 product barrier for the first time since May 2022.

The financial information provider said that product choice has reached 5,146 options, the highest count since February 2022 (5,356).

This is up from 2,258 last October, following the disastrous mini-Budget.

Within the individual loan-to-value (LTV) tiers, following a rise of 45 to 702, availability within the 60% LTV tier is at its highest level on Moneyfacts records. These are mortgages available to borrowers with at least a 40% deposit or equity stake.

The 85% loan-to-value bracket – for those with 15% upfront – saw one of the largest rises over the month and at 806 available products, the product count in this tier is also at the highest level on Moneyfacts records.

Rachel Springall, finance expert at Moneyfacts, said: “The number of mortgage products has risen to its highest point in over a year, boosting choice for consumers comparing deals and sets a positive movement across the market. The encouraging rise in products comes around six months on from the unprecedented uncertainty surrounding interest rates following the fiscal announcement.

“The month-on-month rise in products was a significant 774 options, and several loan-to-value brackets experienced a rise, including deals at 95% LTV which has breached 200 deals for the first time since September 2022 (274).

Rate changes

Average two- and five-year fixed rates rose between the start of March and the start of April, to 5.35% and 5.05% respectively.

The average two-year tracker variable mortgage rate rose by 0.18 percentage points month-on-month and breached 5% for the first time in 14 years to sit at 5.02%.

The average ‘revert to’ rate or Standard Variable Rate (SVR) continued to climb. At 7.30%, this rate is now the highest rate since February 2008 (7.31%).

Springall added: “Those borrowers with a large deposit or equity may be pleased to see the average rates at 60% loan-to-value for a two-year or five-year fixed mortgage stand below 5%. However, those who are coming off a two-year fixed mortgage and wish to refinance on the same term (60% LTV) may wish to note the average rate on a two-year fixed mortgage in April 2021 was 1.63%, compared to 4.95% for April 2023.

“Borrowers comparing both rates and the overall mortgage packages would be wise to seek independent financial advice to assess the true cost of any deal, and to ensure it’s the right time for them to refinance.”