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.
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.”