Number of mortgage products sees rapid growth

Over the last year the number of mortgages available to borrowers has grown significantly, with borrowers at 80% LTV or more seeing the biggest improvements, Moneyfacts data shows.

At the same time rates continue to fall, with the average two, three and five-year fixed rates all standing at the lowest level seen since records began.

There has been a 76% increase in 90% LTv delas and above from 176 in December 2009 to 204 today.

Deals of 85% LTv rose by 85% while 80% LTV mortgage increase by 151% but the number of 60% LTV deals fell by 9%.

The average rate on a five-year fixed rate has fallen from 6.15% in December 2009 to just 5.29% now, a drop of 0.86%.

Both two and three-year fixed rates fell by over 0.5% and two-year trackers fell by 0.23%.

Borrowers are showing no signs of rushing to apply, as latest figures from the Bank of England show that for the sixth month in a row mortgage approval numbers fell.

Michelle Slade, spokesperson for Moneyfacts, says: “A rise in Bank Base Rate still appears elusive and borrowers are opting to make the most of low mortgage repayments while they can.

“Lenders are doing their best to tempt borrowers into remortgaging, but at present there appears to be little appetite to take up the deals.

“The best deals are being offered to borrowers with at least a 25% deposit as lenders vie to attract the more asset rich borrower.

“Borrowers with smaller deposits are seeing signs of improvement, but the rates on offer to borrowers with just a 10% deposit remain high.

“House prices continue to fall in many areas and worries over borrowers getting into negative equity may mean that rates for those with a small deposit remain high for some time to come.”