A new report launched by Iress and Koodoo, shows that almost a third of UK homeowners looking to remortgage prefer 5-year fixed mortgages when refinancing.
The report also highlights a notable increase in products in the 85-90% LTV category.
The publication, entitled ‘Online Mortgage Search and Competition Index’ looked at data to the end of January 2021, and will be published on a monthly basis.
According to the report, 5-year remortgage fixed rates below 60% and at 65-75% LTV saw the fiercest competition in the market based on Koodoo’s proprietary competition index.
In addition, 5-year fixed rates commanded 28.5% of all online clicks, and demonstrated the fastest growth between October 2020 and January 2021.
Supply in the high LTV space remains limited despite strong recovery in the 85-90% LTV remortgage space, with competitiveness increasing by 8% as lenders re-enter this market according to the report.
The index uses Iress’ mortgage sourcing data, combined with search data from Koodoo’s mortgage comparison platform.
Dave Miller, executive general manager at Iress, said: “We’re clearly seeing a response to continued uncertainty in the market, with consumers keen to lock in rates for a longer period.
“We’re also seeing that lenders are beginning to show signs of willingness to lend at higher LTVs.
“It’s our intention that lenders be able to use this data to inform their lending strategies to navigate the current environment and facilitate the eventual return to improved lending conditions.”
Seb McDermott, chief executive at Koodoo’s, added: “In a rapidly changing mortgage market, access to real time customer data is vital.
“The Koodoo analytics platform helps lenders make sense of this data to serve their customers better and we are delighted to be working with Iress to do that.”