The complete variety of mortgage merchandise has reached 6,004 this month, the most important quantity since 2008, however shelf life and pricing stay risky.
According to the latest figures from Moneyfacts on complete merchandise, shelf life and pricing, the availability of merchandise on the 90 per cent mortgage to worth (LTV) tier elevated to its highest level in 4 years at 761.
At 95 per cent LTV the full variety of merchandise involves 318, which is up from 274 in February and almost double the determine from the identical interval final yr.
The complete variety of merchandise at 60 per cent LTV have stayed roughly secure at 677, which is barely up from 640 within the prior month and compares to 657 in March final yr.
Mortgage charges rise whereas shelf life plummets
The common mortgage charges on two- and five-year mounted charges elevated to five.76 per cent and 5.34 per cent respectively.
This is up from 5.56 per cent and 5.18 per cent for a median two- and five-year mounted fee final month.
The common normal variable fee (SVR) is 8.18 per cent, in keeping with 8.17 per cent in February and up from 7.12 per cent in March. It is slightly below the excessive of 8.19 per cent recorded in November and December.
The common two-year tracker fee is 6.15 per cent, secure with February’s determine and a rise from 4.84 per cent final yr.
The report famous that the shelf lifetime of merchandise stood at 15 days in March, the bottom in six months. It is increased than the bottom shelf life in Moneyfacts’ data of 12 days in July final yr.
It is a lower from 28 days in February, however is in keeping with figures from the identical interval final yr.
‘All eyes are on the Monetary Policy Committee and their future rate-setting’
Rachel Springall, finance professional at Moneyfacts, mentioned that mortgage product availability was “volatile” throughout February, as the common shelf lifetime of a deal fell to a six-month low of 15 days.
She attributed this to lenders reacting to adjustments in swap charges, resulting in a number of repricings of mounted fee offers.
“The fee volatility led to an increase in each the general common two- and five-year mounted charges, the other way debtors could nicely have hoped for after constructive fee cuts recorded a month prior.
“However, it is worth noting that fixed rates remain lower than at the start of 2024 and there are still some decent options available for borrowers to compare,” Springall added.
She continued on to say that mortgage selection reported its greatest month-on-month rise in six months, with product selection at higher-LTV tiers recording the most important development.
“However, prospective first-time buyers still have affordability challenges to overcome amid volatile house prices and a lack of affordable housing before they even consider that the average rates on a two-year fixed deal at 90 per cent and 95 per cent LTV sit at 5.99 per cent,” Springall mentioned.
“As mounted mortgage charges rise, debtors could want to wait and see whether or not these charges will come again down within the weeks to come back, however they need to needless to say there’s nonetheless an incentive to change away from an SVR.
“All eyes are on the Monetary Policy Committee and their future rate-setting, in conjunction with the swap rate market, as to whether mortgage rates will come down this year. Borrowers would be wise to seek advice if they are looking for a new deal, particularly as the shelf life of a product remains so unpredictable,” she mentioned.
Anna is a reporter for Mortgage Solutions and assistant editor for Specialist Lending Solutions, each B2B sister titles of YourMoney.com. She has labored as a journalist for over 4 years, initially within the specialty insurance coverage sector earlier than transferring onto mortgages.
