Number of available mortgages on the rise
Research by MoneySupermarket found the number of mortgages available for borrowers has increased from 2,458 to 3,288 products since April 2012, with the total number of products available at the highest levels since August 2011.
The number of 60% loan to value products available has almost doubled (94% increase) from 285 to 553 over the past 12 months.
Similarly 80% LTV products have seen a 48% increase and 75% LTV mortgages have increased by 30%.
The research found that rates on fixed mortgages have decreased, with rates on two-year fixed mortgages falling from 4.21% in April 2012, to 3.28%, while rates on five-year fixed mortgages have also fallen from 4.67% to 3.84%.
Although the fall in fixed rates is welcome, this is often being offset by the rising cost of fees with average total fees for a two-year fixed mortgage increasing from £1,170.50 to £1,393.17, a 19% increase since April 2012.
The average fee on five-year fixed rate mortgages has risen by 22%, from £996.83 to £1,218.13.
Clare Francis, mortgage expert at MoneySupermarket said: “It’s a great time for mortgage borrowers. Since the Bank of England’s Funding for Lending Scheme launched last August, we have seen a significant increase in the number of new mortgage products on offer.
“In addition, two and five-year fixed rate deals are currently at an all-time low. However, the thing to watch out for is the set up costs. Some of the lowest rates have very high fees.”