Number of fixed-rate products at 12-year high: Moneyfacts

The amount of fixed rate mortgage products in the 60 per cent to 95 per cent LTV range has reached a record high, according to Moneyfacts.

The firm says that the number is at its highest level since July 2007.

Meanwhile, in total, the number of residential mortgage products available across all LTVs has increased from 5,181 in January 2019 to 5,214 this month.

In February 2018 there were 644 fewer products – 4,570.

According to Moneyfacts, the choice of products within the 60 per cent LTV tier has widened the most between January 2019 and February 2019, rising from 459 to 488.

In addition, the number of products at the 90 per cent and 95 per cent LTV tiers rose by 26 and 27 respectively between January and February this year.

In February 2009 there was just three products to choose from at 95 per cent LTV and now there are 325.

Moneyfacts finance expert Darren Cook comments: “This increased choice is more good news for first-time buyers this month, with rates dropping as a result of intense competition at these tiers.

“The mortgage lending environment has changed considerably since the FCA introduced its clear affordability guidelines.

“Competition on fixed mortgage interest rates among providers is rife at higher LTVs, as we have seen the average two-year fixed mortgage rate at 95 per cent LTV fall by 0.54 per cent from 3.95 per cent in August 2018 to 3.41 per cent this month.

“Meanwhile, the average rate at maximum 60 per cent LTV fell by 0.02 per cent over the same period.”


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