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Mortgage numbers rise to almost 4,000

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10/05/2021
Borrowers have more choice as competition hots up in the mortgage market
Mortgage numbers rise to almost 4,000

The number of mortgages on offer rose for the seventh month in a row to hit 3,927 in May, said Moneyfacts.

The financial information provider found that borrowers with a smaller deposit were benefitting most from the boost in availability. There are now 78 more deals at 95% of the property’s value and 41 more at 90% than last month.

Lower rates

There’s more good news for borrowers, with the average overall two-year fixed rate reduced by 0.01% to 2.57% this month, following nine months of rate increases.

However, the equivalent five-year fixed rate increased by 0.02% – a fifth consecutive monthly rise – to 2.79%. Moneyfacts said this is probably because of the steep rise in the number of higher LTV products now available to borrowers with a smaller deposit, as these deals tend to be more expensive.

Mortgage fees dipped very slightly, by £2, to an average of £1,051.

Eleanor Williams, finance expert at Moneyfacts, said: “The sense of optimism in the mortgage sector continues, with product choice continuing its climb back towards pre-pandemic levels. After seven months of consecutive increases and 3,927 products now on offer, this represents a 53% rise year-on-year and is the highest this total has been since March 2020. This positive growth complements recent Bank of England figures, which show a boom in mortgage borrowing to levels not seen since prior to the financial crash.

“As always borrowers would be wise to seek advice if they are looking for a mortgage, not only to navigate the boom in choice, but also to ensure they get guidance on eligibility criteria and support to secure the best option for their circumstances.”

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