The latest data from MoneyFacts reveals that the number of available mortgage products currently stands at 4,508. This is down on the height of October 2017 when product availability hit a peak of 4,815.
Charlotte Nelson, finance expert at MoneyFacts, reports a steady decline in product numbers since October, and the subsequent base rate rise.
Significantly, there has been a specific reduction in the availability of mortgages at higher loan to values (LTVs). A total of 74 products were withdrawn from the 90% and 95% LTV markets since November, and four providers have left the 95% LTV sector entirely in the past two months. The belief is that this is mainly due to lenders being unsure of how to price these products following the base rate increase.
However, according to MoneyFacts, there were 4,500 individual product changes last December. This perhaps suggests that lenders are focusing less on their rates and more on the creation of product packages to entice borrowers.
What’s on offer?
For those looking at borrowing today, there is still much to be positive about. Rates continue to remain historically low and there are good deals available whether you are looking for a fixed or variable rate product.
Most recently, Skipton Intermediaries launched a range of competitive, broker-only fixed rate residential and buy-to-let mortgages. Residential customers can get a 2-year fixed at 1.99% with a 90% LTV, with a £995 fee, or a fee-free 3- or 5-year fixed at 2.09% for 80% and 75% LTV respectively. Halifax also announced a £500 cashback offer on qualifying mortgages until 18 March 2018.
So, although the choice of mortgage products has been reduced, lenders are continuing to review and improve their offerings to those currently in the market for a good mortgage deal.