95% of loan-to-value transaction availability rose to 388, now reaching its highest point in nearly five years since March 2020.
This is based on the latest MoneyFacts UK Mortgage Trends report, which also shows that the average shelf life of mortgaged products has increased to 36 days from 21 days a month ago.
Product selection totals fell monthly to 6,451 options, but product numbers were significantly higher than a year ago (5,787).
Overall, the average mortgage rates for two-year and five-year fixed rates rose by 0.04% and 0.07% to 5.52% and 5.32%, respectively.
In early February 2024, the average five-year fixed interest rate was 5.18%; the rate was 0.14% higher than the beginning of this month, at 5.32%. However, the average two-year fixed interest rate fell by 0.04% over the same period, from 5.56% to 5.52%.
The average two-year fixed interest rate is 0.20% higher than the five-year equivalent education, but the gap is the lowest profit margin since January 2023 (0.16%). The current two-year fixed interest rate is higher than the five-year efficiency since October 2022.
The average two-year tracker variable mortgage rate dropped to 5.46%.
The average “recovery to” rate or standard variable rate (SVR) dropped to 7.78%. In comparison, in November and December 2023, the highest record was 8.19%.
Comment on the latest figures Moneyfacts financial expert Rachel Springall said:
“Borrowers with limited deposits may find encouraging that the growth of mortgages can be seen at 95% of the loan value, now the highest loan value in nearly five years. It is very positive to see this, but in the market There is still a lot of room for more deals to be launched in one area, as it accounts for only 6% of all transactions on fixed and variable mortgages.”
Springall said it urged lenders to do more to support first-time home buyers to boost economic growth and thus debate on loan rules relaxation. So, she said, hopefully, more products and innovations will emerge this year.
“However, the current rules will continue to challenge lenders to do more, just like in the past 10 years, regulatory recommendations have stipulated that loan income ratios of 4.5 or higher do not exceed 15% of the lender’s new loan.
“Some people have no choice but to limit borrowers at higher loans to value levels until lenders see these rules relax. Whether or not these rules change, there will be borrowers hoping to complete by the end of March 2025 Purchase before stamp duty deadline.”
