nigel woollsey

Nigel Woollsey

Online Writer
Published: 11/02/2019
It's good news for those searching for a fixed rate mortgage: The latest data from Moneyfacts UK Mortgage Trends Treasury Report shows that there are more fixed rate residential mortgage products available now than at any other time since data started being recorded in 2007 across most loan-to-value (LTV) tiers.
Those who are either looking to buy a home or wanting to remortgage will find there is an increased choice in fixed rate products across a range of tiers from 60% LTV up to a maximum of 95% LTV (February 2009 versus February 2019).

Fixed rate mortgages – number of available products

Maximum LTV tiers


60%


75%


80%


85%


90%


95%


Feb-09


164


309


47


148


83


3


Jan-19


459


684


530


618


619


298


Feb-19


488


707


542


634


645


325

Difference - Jan/Feb '19


29


23


12


16


26


27









Source: Moneyfacts Treasury Reports.

These latest figures show there is more choice for borrowers who are looking for a fixed rate mortgage. In the lower LTV tiers, the number of fixed rate mortgages available at maximum 60% LTV increased more than any other between January and February 2019. However, recent research from Moneyfacts.co.uk reveals the reduction in the average fixed rate for 60% LTV products (two-year fixed rate mortgage) has dropped only 0.02% since August 2018 to stand at 1.87% this month.

However, there is good news for those with a smaller deposit of 5 or 10%, with product numbers increasing significantly at the higher LTV tiers to stand at their highest levels in over a decade this month. Unlike at the lower LTV tiers, this competition has already driven a reduction in the average fixed mortgage rate: at the 95% LTV tier, the average rate of a two-year fixed mortgage dropped from 0.54% in August 2018 to 3.41% this month.

Darren Cook, Finance Expert at Moneyfacts.co.uk, said:

"Product availability is also increasing rapidly at the higher LTV tiers, with the number of products at the 90% and 95% LTV tiers rising by 26 and 27 respectively between January and February this year. This increased choice is more good news for first-time buyers this month, with rates dropping as a result of intense competition at these tiers.

"In February 2009, when the ramifications of the financial crisis were still being assessed, borrowers only had three products to choose from if they could only muster a 5% deposit. The mortgage lending environment has changed considerably since the Financial Conduct Authority introduced its clear affordability guidelines and today, a borrower seeking a 95% LTV mortgage has instead a total 325 mortgage products to choose from."

Increased choice makes it important that borrowers carefully search and compare mortgages to find the right one for them. Our mortgage search tool can help.

Disclaimer

Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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