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Mortgage deals reaching 4,000 - Moneyfacts

Journalist: Samantha Downes, Freelance and Pumpkin Pensions

ended 14. February 2023

Hi - looking for comment on the below: I want to put a ‘how to’ on our article thanks

Choice of mortgage products recovers to levels not seen since August – website

The number of mortgage products available has surpassed 4,000 for the first time since last August, according to a financial information website.

Moneyfacts.co.uk, which counts the number of mortgage products at the start of each month, said 4,341 deals were available on February 1.

This compared with 3,643 products counted at the start of January.

Many mortgage deals vanished from the market last autumn, amid market turmoil in the days following the mini-budget.

There were 2,258 deals left by October 1 2022, down from 3,890 at the start of September 2022, according to Moneyfacts’ figures.

In further signs of more stability returning to the mortgage market, the average “shelf life” of a mortgage product before it is withdrawn has increased to 28 days, up from 15 days in January.

The choice of deals for borrowers with smaller deposits has also increased, with 149 products available in February for people with a 5% deposit, edging up from 132 in January.

Some 539 deals were available at the start of February for people with a 10% deposit, jumping from 435 in January.

Product choice for people with a 40% deposit is at its widest in three years, with 606 deals available – the highest number in this loan-to-value bracket since February 2020.

Across all deposit sizes, the average two-year fixed-rate mortgage in early February was 5.44%, up from 5.79% in January.

The average five-year fixed-rate mortgage this month was 5.20%, down from 5.63% in January.

Standard variable rates (SVRs), which borrowers move on to when their initial mortgage deal ends, are continuing to climb.

At 6.84%, the average SVR is the highest on Moneyfacts’ records since October 2008.

Rises in the Bank of England base rate have, in general, been pushing up borrowing costs.

Rachel Springall, a finance expert at Moneyfacts, said: “The mortgage market has shown notable stability with product choice, as the total number of mortgage options has breached 4,000 for the first time since August 2022.”

She added: “Borrowers with a limited deposit may be pleased to see choice expand month-on-month and that both the two and five-year average fixed rates at 95% loan-to-value sit below 6% for the first time since October 2022.”

Ms Springall continued: “Those borrowers sitting on their revert rate may wish to note the average SVR stands at its highest point since October 2008, so switching to a fixed deal may help them reduce their monthly mortgage repayments and give them peace of mind.”

She said: “It is imperative borrowers take time to seek advice to ensure they are considering all the options available, particularly as fixed interest rates are expected to fall further in the coming months.”

9 responses from the Newspage community

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Aaron Strutt
Product and Communications Director at Trinity Financial
Even though there are more rates available many of them are pretty expensive. The mortgage market has been through a brutal period although it is starting to recover. HSBC recently launched a 3.99% five-year fixed rate sparking many of its competitors, including Nationwide, to lower rates by up to 0.75%. With so many remortgages coming up for renewal this year and pent-up demand from homeowners, many borrowers will be hoping fixed rates continue to come down even though the Bank of England will probably hike the base rate again.
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Imran Hussain
Director at Harmony Financial Services
The mortgage market is starting to get active again with more lenders showing an appetite to lend and also competing for the best borrowers products are being pulled at short notice and new ones are launched immediately by some lenders so for borrowers now more than ever it's important to get advice.
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Justin Moy
Managing Director at EHF Mortgages
Having the opportunity to look at over 4000 mortgage products just emphasises how important it is to work with a Mortgage Broker who can both access, and advise, across this wide range of lenders and deals. The more the market improves, and product numbers rise, this can only benefit the borrower and help push rates to cheaper levels. To see the product numbers double since the 1st October tells you how far we have moved in a reasonably short period of time.
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Samuel Mather-Holgate
Independent Financial Adviser at Mather and Murray Financial
With the choice of mortgages increasing, but rate volatility also high it's important to ensure you are analysing the whole of the market and speaking with an adviser who has access to all lender offers to make sure you are getting the best deal. The key to this is understanding your circumstances to make sure the mortgage will include all of the features you need, then compare the rates of the appropriate offers, both fixed and variable, over different terms and weigh up the pro's and con's of each. This can be complex with lots to consider so having a good relationship with your mortgage broker is key.
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Jamie Lennox
Director at Dimora Mortgages
It's great to see a huge uplift in product availability for consumers. With the ever-changing market there has also seen an increase in lenders offering alternative products to fixed rates. One thing that is clear, with a larger pool of products to wade through it is important to seek expert advice to make sure the consumer gets the right deal for their circumstances.
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Gary Bush
Financial Adviser at MortgageShop.com
The mortgage rate situation is definitely stabilising after the chaos of last last year - thankfully.
Members of the public looking to purchase, remortgage or indeed borrow further funds from their existing lender need to allow more time for the transaction to process - it's busy out there!
As far as the mortgage lenders variable rate is concerned we are now back to a more normal status with rates - for those advisers who have been around long enough, the variable rate being above the fixed rates isn't something to worry about, it's kinda how things used to be.
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Samuel Ewen
Managing Director at Rosehill Financial Services
Fixed mortgage rates are continuing to reduce despite the recent Base Rate increase. This is because the Base Rate isn’t the only factor involved in determining fixed mortgage rates.

Fixed rates are largely influenced by Swap Rates, which have been steadily reducing over the past few weeks. Therefore, I expect to see more and more mortgage products reach the market over the coming months, and more competition in the market naturally brings more competitive rates.

That said, buyers and those looking to remortgage shouldn’t race to arrange a fixed mortgage rate without exploring their options. Although the Base Rate has been increasing, variable rates, such as tracker rates, may still be the most suitable option for some people, particularly those with no early repayment charges, whilst fixed rates continue to reduce.
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Sofia Jones
Mortgage & Insurance Adviser at Penny House
Greater choice available is a benefit but highlights the need for professional advice.
Choosing between a tracker rate mortgage and a fixed rate mortgage depends on your individual goals, amongst other factors.
It may also be tempting to place a lower deposit (even if you have a larger deposit available), if by doing so the interest rate is effected by 1% then this could mean a big difference in the total cost of the borrowing.
How to chose a mortgage adviser

1. Licensing and credentials: (CeMAP or equivalent)
2. Experience: Proven track record and significant experience in the industry.
3. Reputation: check online reviews and references from friends or family members.
4. Communication skills: A good mortgage advisor should keep you informed throughout the process. Even when there’s no news
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Ceri Evans
Manging Director at Remoo Mortgages
It’s great to see the mortgage market bouncing back, and even though it may not feel like it right now, I believe the outlook is good. Choice brings competition and what we are seeing now is lenders beginning to open the taps a little more in terms of competing with each other not only rate wise, but product wise too. There’s a great choice of fixed deals on 2, 5, 7 and 10 years terms and there are some fantastic Tracker and Discount deals available, if that’s what you’re looking for. Even though rates are higher now than they’ve been for the past 8 years or so, they are coming down and though I don’t believe we’ll go back to 2 year fixed rates at sub 1%, I can foresee rates leveling a little and then reducing further as we get inflation under control and the Bank of England begins to bring the base rate back down.