New data from Moneyfacts shows there were 7,132 at the start of June, compared with 6,784 at the start of May – up by almost 350
The number of mortgage deals available has increased in a boost for first-time buyers and homeowners.
New data from Moneyfacts shows there were 7,132 at the start of June, compared with 6,784 at the start of May – up by almost 350.
Many mortgage deals were pulled by lenders following the conflict in the Middle East and uncertainty over UK interest rates.
The number of low deposit mortgages has also improved, with 466 deals for borrowers with 5% deposits available in early June, compared with 436 in early May.
Moneyfacts data shows fixed mortgage rates have dropped too. The average two-year fix on Monday was 5.64%, down from 5.65% on Friday last week, while the average five-year fix was 5.60%, down from 5.61%.
The average standard variable rate remains at 7.13%, down by 0.35% year-on-year from 7.48%. The highest recorded was 8.19% during November and December 2023.
The average shelf-life of a deal now stands at 15 days, one day fewer than the month prior.
Rachel Springall, a finance expert at Moneyfacts, said: “Thankfully, the volatility surrounding swap rates (which are used by lenders to price mortgages) has eased somewhat and the average shelf-life of a mortgage deal now stands at 15 days, on par with a month prior and a much more reasonable length compared to just eight days back at the start of April.
“The calming product churn will no doubt delight borrowers, brokers and lenders who are trying to keep abreast of latest deals to hit the market.”
She added: “First-time buyers remain the lifeblood of the mortgage market, so it’s essential lenders support them with packages that help them save on the upfront cost.”
The Bank of England held its base interest rate at 3.75% at its last meeting in April over fears of another inflation shock later this year.
UK inflation was most recently recorded at 2.8% in April, having dipped from 3.3% in March. The slowdown was linked to a drop in energy prices, but gas and electricity bills are set to rise again in July.
Bank forecasts predicted that inflation could peak at between 3.6% and 6.2%, depending on the severity of the conflict in the Middle East.
Economists currently expect at least one increase to interest rates later this year. The Bank of England has a target of 2% inflation and uses interest rates to keep the level of prices rises under control.
