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Boost for buyers as mortgage choice rises and rates drop

Low deposit home buyers have been given a boost after product choice hit a 14-month high.

Data from Moneyfacts shows the number of deals at 95% loan-to-value (LTV) has risen to its highest point of 254 since before the mini-Budget of September 2022.

The number of options at 90% LTV also rose month-on-month and stands at its highest count since February 2022 at 709.


Mortgage products are also sticking around for longer, with the average shelf-life of a mortgage product up to 20 days, which is its highest since June 2023, Moneyfacts said.

This has now increased for four consecutive months from a low of 12 days in July, which was the shortest average shelf-life on Moneyfacts’ records.

Average fixed mortgage rates across all LTV tiers on two- and five-year fixed rate deals also fell for a third consecutive month.

The overall average two- and five-year fixed rates fell between the start of October and the start of November, to 6.29% and 5.86% respectively. The average two-year fixed rate stands at 0.43% higher than the average five-year equivalent, a narrower gap than the 0.50% difference last month.

Rachel Springall, finance expert at Moneyfacts, said: “The growing choice of mortgage options demonstrates a buoyant period for the market as the year end edges closer.

“Borrowers with a limited deposit or equity of just 5% may be pleased to find more choice of deals in this sector. 

“These are promising signs that the market is settling and could result in more time for borrowers to take advantage of new offers. However, there is no telling how long this may last, as there are growing expectations for fixed rates to fall further, and this could impact the shelf-life of competitively priced deals. Lenders will need to carefully balance their pricing and consider any end-of-year targets they expect to hit.

“Fixed rates on average have now dropped for the third consecutive month and both the average two- and five-year fixed rates stand at their lowest points since June 2023. 

“Year-on-year, the market has seen substantial recovery when it comes to choice, but there is still more room for improvement for those borrowers waiting for fixed rates to fall further before they secure a new deal.”


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