More choice available for homebuyers and investors seeking mortgages

 

Mortgage product numbers are continuing to rise. As lenders gain more confidence, homebuyers and investors seeking mortgages are welcoming the additional choice.

Currently, there is the highest number of mortgage deals on the market since March 2020, when there was a sharp fall in mortgage availability. There are 3,532 mortgage deals available compared to 5,222 in March last year, according to Moneyfacts. There has been a rise in the number of mortgages available across most loan-to-value (LTV) ratios.

This rise in mortgage deals is good news for homebuyers and investors looking to take advantage of the tapering end to the stamp duty holiday. The increase in mortgage availability across the board is providing additional choice as lenders continue to gain more confidence.

A range of mortgages available

The number of mortgage deals with a 25% deposit increased by 60 to 716 this month. This is only 129 fewer than March 2020 when there was 845 deals available. Additionally, over the past few months, there has been a substantial increase in the number of deals with 10% deposits. In January, there were 160 deals, and now there is 323. However, this is 456 fewer than a year ago.

For those with only a 5% deposit, there are still very few deals available. With no change over the past month, there are only five mortgages currently available on the market. Although, this will likely change with the mortgage guarantee scheme starting at the beginning of April.

More choice for buyers and investors

The mortgage guarantee scheme will provide greater mortgage availability for homebuyers with 5% deposits. This will help first-time buyers in particular to find more mortgage options with smaller deposits. Additionally, as the number of first-time buy-to-let landlords has increased, the percentage of mortgage deals available for new landlords has also risen.

Eleanor Williams from Moneyfacts comments: “Borrowers with varying levels of equity or deposit may be pleased to note continued improvements in product availability across the LTV tiers, except for 95% LTV where there are still just five specialist deals on offer.

“However, this may soon change with the Government-backed mortgage guarantee scheme from April where, up to this point in time, first-time buyers may have felt neglected. In 2020 mortgage products for those with small deposits nosedived and saving for a bigger deposit continues to be hampered by rock-bottom savings rates, while demand remains high for the limited number of affordable properties.”

Interest rates are on the rise

Borrowers looking to secure a mortgage are recommended to act soon as interest rates are on the rise. The average rates for both two- and five-year fixed deals have increased. At the highest level since June 2016, the average two-year fixed rate is 2.57%. This is 0.14% higher than a year ago. And the average five-year fixed rate is standing at 2.75%, which is only 0.01% higher than in March 2020.

However, mortgage rates, especially for deals with lower LTV ratios, remain highly competitive. There are also rates available that are substantially lower than the average rates. It could prove to be a good time for homebuyers and investors to lock in competitive interest rates before they potentially rise even more.

Keep in mind that the lowest interest rate doesn’t always mean the best deal, so it’s important to effectively assess available deals on a number of factors, such as product fees, incentives and flexibility. To help you find the best deals for you and your personal circumstances, seek independent financial guidance.

Highgrove Mews

High Net Yield Freehold Houses

  • Commutable to London (27 mins to central Paddington station)
  • Rental demand extremely strong with large industry presence in Reading
  • Freehold with 4% net yield

£284,955 - £457,000

St Petersgate – Stockport Manchester

New Launch - Stockport Manchester, apartments from £160,000

  • Discounted launch prices from £160,000
  • Excellent transport links with 3 trains per hour to London Euston and only 9 mins journey to Manchester Piccadilly
  • Experienced development team

Assured Rent Housing Association Leases

Assured Rent Housing Association Leases

  • Assured rent & no rental voids
  • Tenant damage cover & newly refurbished inline with requirements of a corporate sitting tenant
  • Free property and lettings management

From £62,000

Emerging Birmingham Commuter Town With Properties From Just £104,000

The emerging Birmingham commuter town where properties are selling in an average of just 24 days

  • A collection of 62 two bedroom apartments and 28 one bedroom apartments.
  • DE14 is one of the fastest selling postcodes in the West Midlands.
  • 23 minute train journey into Birmingham New Street Station.

Properties from £104,000

Mill, Stockport

The Northwest's emerging property hotspot

  • Discounted off-plan 2-bed prices from £162,000
  • Completion date - Q4 2021
  • Rental yields - 6% plus

Discounted off-plan 2-bed prices from £162,000

South Central – Birmingham City Centre Apartments

Highly anticipated 28 storey launch in Birmingham City Centre with an impressive roof garden and communal facilities.

  • 154 units across 28 storeys
  • Residential multi-media community room, gym, roof garden and sky cinema
  • Excellent future connectivity via the metro system to other key transport hubs and locations around the city

from £205,800

ba-

Talk to us

Speak to our UK property experts today: 

+44 (0) 333 123 0320

Open from 9am-6pm GMT

+852 9865 4446

Open from 9am-6pm HKT

Stamp Duty Calculator

.

Unlock members only investment opportunities and full development details. Join now – it’s free, quick and easy.

Login

Not a member? Sign up for free

base rate rise

More choice available for homebuyers and investors seeking mortgages

Example

By submitting your details via this online form you agree to be contacted via email/phone/SMS by Direct Marketplace Ltd t/a BuyAssociation in relation to property investment and property developments . We do not share your personal details with third parties.  To view our full Privacy Policy click here.