According to latest data from Moneyfacts, comparing March 2021 to last year, there are now 650 more mortgage products on offer than there were in April 2020. The choice of mortgage products available has recovered to 74% of pre-pandemic product levels with 3,842 deals available today.
The largest product availability increases were in higher loan to value (LTV) products:
2 year and 5 year fixed rate mortgage deals both increased average interest rates this month by 0.01% and 0.02% respectively with 2 year and 5 years fixed rates for 95% LTV mortgages increasing by 0.48% and 0.57%. Other rate rises this month were limited to 50% LTV 5 year fixed rate deals.
Lenders fees are also increasing with the highest fee rises recorded since November 2012 when it hit £1,107 this month from £1,053. This may indicate that lenders are looking to gain additional margins whilst still lloking like they are offering borrowers competitive interest rates.
Fixed rate deals are still high when you think that the Bank of England base rate is just 0.1%pa. That said, lenders have had to absorb significant costs, mortgage holidays and arrears during the pandemic, so it is no wonder that they need a margin somewhere. Perhaps, now is the time to take expert mortgage advice so that you don't miss the 'small print' traps when selecting a mortgage?