The signs are that even with the stamp duty holiday tapering to a close at the end of the summer, the market looks set to remain strong thanks to helpful trends in the mortgage sector.
Independent mortgage market monitor Moneyfacts says that the number of available mortgage products has now grown for nine consecutive months, while rates have dropped at the fastest rate since June 2020.
This continuous increase in product numbers means that today’s 4,512 deals currently on the market represents the largest choice since March 2020, when there were 5,222.
“Over the past six months alone availability has recovered by 1,619 – or 56 per cent – and for the first time in over three years, we tracked improvements in choice across all the LTV brackets this month. [This is] great news for borrowers with all levels of equity or deposit” says Moneyfacts financial expert Eleanor Williams.
The monitor reports that the average two- and five-year fixes having each dropped since June, to 2.55 and 2.78 per cent.
Compared to last year, however, these rates are far higher. The data shows that in July 2020, the average two-year fix stood at 1.99 per cent and the average five-year fix at 2.25 per cent.
Williams adds: “First-time buyers and those considering a mortgage at higher Loan To Values are amongst those to benefit the most from rate cuts, with the average two- and five-year fixed rates at 90 per cent LTV falling by 0.15 and 0.08 per cent respectively, while at 95 per cent LTV reducing by 0.09 and 0.06 per cent, respectively.
And she continues: “Competition is evident across the residential mortgage sector, but there is no guarantee that rates will continue to fall, or for how long these record-low deals may be available for.”