The mortgage market has seen a notable recovery since the turbulence of two years ago, bringing positive news for buyers and homeowners alike. If you think back to 2022, you’ll recall that the mortgage market was in disarray. In the aftermath of the Mini-Budget, the market was chaotic – with interest rates spiking, and lenders withdrawing products rapidly.
Fast-forward two years, and the mortgage market has bounced back significantly. New data released earlier this month reveals a brighter outlook for anyone seeking a mortgage or looking to renew.
Greater Choice for Mortgage Consumers
The Moneyfacts UK Mortgage Trends Treasury Report has shown a substantial increase in mortgage product availability. Where only 2,258 fixed and variable products were available in October 2022, today there are 6,445 options to choose from. This increase offers mortgage consumers far more choices, whether they’re first-time buyers with high loan-to-value rates or established homeowners with considerable equity.
Comparing Loan-to-Value Product Availability
Let’s look at how the mortgage market compares today to the situation two years ago:
- 95% loan-to-value – In October 2022, there were just 132 products available; today, there are 351.
- 90% loan-to-value – Previously, there were 295 products; now, there are 751.
- 60% loan-to-value – Two years ago, only 337 products were available; now, there are 775 options.
With more mortgage products across various loan-to-value brackets, consumers willing to shop around can find deals better suited to their needs.
Longer Shelf Life for Mortgage Products
Another positive change in the mortgage market is the increased shelf life of products. This refers to the number of days a mortgage deal is available before being withdrawn by the lender. Currently, mortgage deals remain on the market for an average of 21 days, compared to only 15 days two years ago. This extended window offers consumers more time to consider options and make informed choices.
Hope on the Horizon for Interest Rates?
One factor we haven’t discussed yet is interest rates. There’s a growing anticipation that a reduction may be on the horizon. With inflation having fallen faster than expected in September to 1.7%, the Bank of England will meet on 7 November to review interest rates. A reduction could further strengthen the mortgage market and provide additional relief for borrowers.
Know Someone Looking for a Mortgage?
If you know anyone considering moving or looking for the best mortgage deals in 2024, feel free to share this article to help them make the most of today’s favourable market conditions. With a growing range of options, it’s a great time to secure a mortgage that fits their needs.
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