- 8 February 2021
- Posted by: mikey0809
- Categories: Mortgage, Property
The Moneyfacts UK Mortgage Trends Treasury Report has also shown that this was the highest 4-monthly increase recorded since 2007.
This has increased from 2,893 mortgages available in January.
The largest change was a 90% loan to value (LTV) tier which almost quadrupled to 248 since October. On a monthly basis, the availability of low deposit products rose from 160 in January.
Mortgages are also staying on the market for longer, following a period of limited edition deals and short term tranches to manage service levels.
In November, December and January, the shelf life of all mortgages was 28 days whereas this increased to 40 days in February, showing signs of a return to stability in the sector.
The average two-year fixed rate for all LTVs increased for the seventh month in a row, while 5-year equivalents rose for the second consecutive month.
The rate rises were very nominal however, at just 0.01% and 0.02% to 2.53% and 2.73% respectively.
Borrowers with smaller deposits were a little more fortunate, as average rates for 90% LTVs dropped by 0.09% and 0.07% for a 2-year fixed and a 5-year fixed respectively.
The average rate for a 2-year fixed mortgage at 90% LTV stands at 3.56%t, while a 5-year fixed equivalent is 3.72%.
Eleanor Williams, spokesperson at Moneyfacts, said: “Recent HMRC data reflects the boom in activity in the mortgage sector at the end of 2020, with stamp duty transactions in the final quarter of last year surging to over 40 per cent higher than the previous quarter, as those rushing to take advantage of the temporary holiday in stamp duty and those unleashed after the enforced shutdown flooded the market.
“This is echoed in our data where, following four months of improvement, at 3,215 products, overall choice has now returned to the highest level recorded since March 2020.”