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Low deposit mortgage choice hits two-year high

The number of low deposit mortgage deals has reached a two-year high.

Data from comparison website Moneyfacts shows the availability of deals at the 95% loan-to-value (LTV) tier has risen to 361, the highest point since May 2022.

Product choice overall has also increased to 6,658 options, its highest level since February 2008.


Mortgage deals are sticking around for longer, with the average shelf-life of a mortgage product rising to 30 days so far in July, up from 15 days a month prior. The lowest shelf-life average on record was 13 days in July 2023.

Average mortgage rates have increased slightly overall though for a two and five-year fix by 0.02% and 0.03% respectively. This marks the fifth consecutive month of rises. These rates remain slightly lower compared to December 2023. The average two-year fixed rate is slightly higher compared to January 2024, Moneyfacts said

The overall average two- and five-year fixed rates rose between the start of June and the start of July, to 5.95% and 5.53% respectively. The average two-year fixed rate is 0.42% higher than the five-year equivalent.

Rachel Springall, finance expert at Moneyfacts, said: “Borrowers who have a limited deposit may be pleased to see a rise in the number of mortgages available at 95% loan-to-value this month, reaching a two-year high. 

“Lenders have been repricing their deals in response to volatile swap rates, which calmed during June. If swap rates reach a turning point to drop then there will be an expectation for fixed mortgage rates to come down, but this may be a slow and steady process to have a huge impact on overall average rates.

“The concerns surrounding mortgage affordability among borrowers remains and the Government will no doubt be under the spotlight to see what plans may be set in motion to support homebuyers and those looking to get onto the property ladder.”


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