The housing market may be a little sticky in the middle of summer right now, but there’s certainly no shortage of mortgage options for prospective buyers.
Mortgage monitor Moneyfacts says there have now been 15 months of consecutive increases in residential mortgages - and that there are now over 4,500 options in total.
Since April 2009, when the number of products on the mortgage market hit an all-time low of 1,209, the residential mortgage market has seen product numbers grow substantially. The number of deals on the market has increased by 61 per cent in just five years.
“The numbers this month were boosted by several lenders entering the three-year fixed rate market, which saw the number of three-year fixed rate deals increase by 48 products to 439. With the two-year fixed rate sector still seeing heavy competition, providers are starting to look elsewhere, and the three-year fixed rate market offers providers an opportunity that some have used to branch out” explains Moneyfacts’ Charlotte Nelson.
“The talk of an impending base rate rise means that borrowers are starting to look at their options to protect themselves from a potential rise in monthly repayments. Since a five-year fixed rate can be too long for some, a three-year deal can bridge the gap for those wary of fixing for longer. Providers, knowing this, are tapping into this previously underdeveloped market” she continues.