There are more mortgage products on the market than at any time since February 2022 when the number stood at 5,356.
This month the number of products jumped by 774 to 5,146, the second biggest monthly jump on record.
That record, according to Moneyfacts, was in November last year when 869 new mortgages were launched. But that was following a sharp decrease after Liz Truss’s mini-budget.
Brokers now have more than twice the number of products available than they did in October.
The number of products dipped below 5,000 in May last year and this recovery has been widely welcomed.
After the mini-budget the number of products dropped by 42 per cent to 2,258. By November they had risen to 3,117.
While mortgage rates have generally been decreasing this year, they showed an uptick in April for two- and five-year deals.
Two-year fixed rate deals now average 5.35 per cent and the five-year average is 5.05 per cent.
These are slightly up from March.
The average standard variable rate is now 7.3 per cent, the highest level since February 2008.
Rachel Springall, of Moneyfacts, said: “Interest rate competition among lenders was mixed in the past month, however it is widely expected that fixed mortgage rates will reduce over the next few months, but this will be determined by fluctuating swap rates and lenders appetite for business.
“Those borrowers with a large deposit or equity may be pleased to see the average rates at 60 per cent loan-to-value for a two-year or five-year fixed mortgage stand below five per cent.”
Those coming off fixed-rate deals this year will be paying much more.
In April 2021 the average two-year fixed-rate was 1.63 per cent – and that is now 4.95 per cent. This will add hundreds of pounds onto home-owners’ monthly outgoings.
Mike Bradley, a senior broker at Home Owners Advice, said: “The increasing number of products has to be good for those seeking a mortgage.
“We did see rates drop to below four per cent but they have crept back up. However, there remain deals sub-four per cent and brokers will have access to them.
“For those coming off fixed deals there will be an increase. They managed to fix when rates were eye-wateringly low and now they are perhaps at a more sensible long-term level.”
